• 2 minutes Rational analysis of CV19 from Harvard Medical School
  • 4 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 7 minutes Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 3 hours Joe Biden the "Archie Bunker" of the left selects Kamala Harris for VP . . . . . . Does she help the campaign ?
  • 10 hours Trump Hands Putin Major Geopolitical Victory
  • 1 min Tesla Begins Construction Of World’s Largest Energy Storage Facility
  • 1 day China wields coronavirus to nationalize American-owned carmaker
  • 3 hours America Could Go Fully Electric Right Now
  • 4 hours Those Nasty White People and Camping Racism
  • 2 days Open letter from Politico about US-russian relations
  • 13 mins Will any journalist have the balls to ask Kamala if she supports Wall Street "Carried Interest" Tax Loophole
  • 1 day COVID&life and Vicious Circle: "Working From Home Is Not Panacea For Virus"
  • 15 hours Brent above $45. Holding breath for $50??
  • 6 hours The Truth about Chinese and Indian Engineering
  • 1 day Oil Tanker Runs Aground in Mauritius - Oil Spill
  • 3 days US will pay for companies to bring supply chains home from China: Kudlow - COVID-19 has highlighted the problem of relying too heavily on one country for production
  • 2 days Trump is turning USA into a 3rd world dictatorship
Saudi Aramco: Asian Oil Demand Recovery Almost At Pre-Crisis Levels

Saudi Aramco: Asian Oil Demand Recovery Almost At Pre-Crisis Levels

The world’s biggest oil-producing and…

How COVID-19 Completely Disrupted Car Markets

How COVID-19 Completely Disrupted Car Markets

The Covid-19 pandemic has upended…

Brazil’s Newest Oil Auction Attracting Oil’s Heavy Hitters

Brazil’s newest oil auction is attracting some of the world’s biggest oil majors such as BP, Chevron, CNOOC, ExxonMobil, and Shell, the Brazilian government said on Monday, according to Bloomberg.

Brazil expects the transfer of rights auction that will be held on November 6 to bring in $25 billion in licensing fees for an area that Brazil had originally given to Petrobras to pump 5 billion barrels of oil. But Petrobras found more oil than that, leaving Brazil to auction off the rest, which could be between 6 billion and 15 billion additional barrels, according to the regulator.

As Petrobras has already found a significant amount of oil in the area, the interest in the upcoming auction is no surprise. The areas up for sale lie in Brazil’s presalt zone off Brazil’s coast, and in addition to Chevron, Exxon, and Shell, 14 other companies have expressed interest as well. The blocks up for sale are the Buzios, Atapu, Itapu, and Sepia blocks.

(Image courtesy of Petrobras)

Other oil majors that have registered for the auction includes other heavy hitters including CNODC, Equinor, Galp Energia, Petrogal, Petrobras, and Total, to name a few.

This auction is particularly attractive due to Petrobras already discovering oil in this area. Still, the blocks are deepwater blocks, and attract mostly bigger oil companies who have deep pockets.­­

The auction just last week cleared a significant hurdle after the Brazilian Congress approved part of a energy bill that determines how the revenue sharing will be handled for the auction.

The auction is important for Brazil, who’s national debt has risen to a new record high of 79.8% of GDP, according to central bank figures as reported by KFGO on Monday.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News