• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 8 mins Shale Oil will it self destruct?
  • 20 mins NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 30 mins White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 4 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 3 hours U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 4 hours South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 4 hours Starlink Internet Courtesy of Tesla
  • 1 day Panama revoked registrations of tankers flying under their flag that have not complied with sanctions. Most are Iranian tankers. Vessel seized in Gibraltar, Grace I, flying under Panamanian Flag. Registration revoked in May. England seizing justified
  • 1 day Oil Price Could Fall To $30 If Global Deal Not Extended
  • 23 hours Rising air pollution and green house effect
  • 1 day Is This The End of BBQ?
  • 21 hours U.S. Economic Expansion: Rich Get Richer
  • 15 hours Germany exits coal: A model for Asia?

Exxon Acquires $1.2B Worth Of Oil Blocks In Brazil Auction

Brazil

Exxon won the rights to develop 10 oil blocks in Brazil’s deep waters at a Wednesday auction that marks a turn for the local oil industry after years of Petrobras’ reign. The new government hopes to lure back investors by privatizing a string of state companies and by opening up the pre-salt layer oil wealth to all who are interested.

The U.S. giant partnered with Petrobras for six of the ten fields that fetched a total US$1.2 billion (3.8 billion reias). For one of the fields, located in the Campos Basin close to the pre-salt zone, Exxon and Petrobras bid US$700 million (2.24 billion).

This, according to Reuters, is the highest ever bid for a Brazilian oil block. AFP notes that this single bid exceeded the total expected proceeds from the tender. Expected proceeds for the entire auction, according to the head of the National Petroleum Agency Decio Oddone, were US$157 million. Reuters pegged the expected earnings at $529 million.

A total of 287 blocks were auctioned yesterday, but the portion of blocks that actually found investors was small—just 37. Yet, the total proceeds from the auction were certainly impressive. Reuters quoted government officials as saying they had expected 40 percent of the blocks on offer to find takers.

Related: Oil Analysts Baffled As Venezuela Ditches Petrodollar

The results of the auction could be indicative of future interest. This is just the start of a series of auctions that will next delve into the pre-salt fields, with an auction scheduled for October 27. Most of Brazil’s undiscovered oil wealth lies in these pre-salt zones in deep waters, and the industry is eager to explore them.

Norway’s Statoil,  French Total, and Shell are already operating in the pre-salt zones. The rest of the supermajors and smaller E&Ps are very likely to follow.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Tom on September 28 2017 said:
    Where is Russia and China in a joint bid? Where goes Exxon, follow.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play