• 2 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
  • 2 days Mexico Blames Brazil For Failing Auction
  • 2 days Norway Allows Eni To Restart Goliat Oil Field In Barents Sea
  • 2 days Malaysia Suggests Muslim Countries Stop Trading Oil In U.S. Dollars
  • 3 days Kinder Morgan Wins Appeal To Start Trans Mountain Work
  • 3 days Mexico Cancels Deepwater JV Tender Due To Lack Of Interest
  • 3 days Oil Drillers Give Cold Shoulder To Alaska Bidding Round
  • 3 days Budweiser Bets On Tesla To Replace Its Fleet
  • 3 days Forties Pipeline And Nearby Terminal Disrupted After Oil Leak
  • 3 days Major Nigerian Union Threatens Strike After Mass Firing Of New Members
  • 4 days China’s Sinopec Sues Venezuela’s PDVSA Over Unpaid Debts
  • 4 days Chevron Cuts Total 2018 Capex, Boosts U.S. Shale Investment
  • 4 days Shell Idles Six Nigerian Power Plants After Gas Shortage
  • 4 days London Firms To Visit Saudi Arabia As Battle For Aramco Listing Continues
  • 4 days East Timor Is Running Out of Oil
  • 4 days Withdrawal From OPEC Deal Could Take 6 Months To Negotiate
  • 4 days India’s Largest Refiner Looks To Ditch Oil In Favor Of Renewables
  • 4 days Protestors Shut Down A Minnesota Wells Fargo Over Oil Investments
  • 4 days U.S. Energy Secretary Discusses LNG Exports To Saudi Arabia
  • 5 days China’s CNOOC Spends Big In Panic Hoard of LNG
  • 5 days Asia May Return To Mid-East Crude As Mexican Supply Tightens
  • 5 days Enbridge Restarts Controversial Line 5 After Shutdown
  • 5 days South Sudan Stills Owes $1.3B Oil Payments To Sudan
  • 5 days Oil Prices Fall After API Reports Huge Build In Gasoline Inventories
  • 6 days Rosneft Takes On Massive Debt As US Sanctions Mount
  • 6 days Kinder Morgan Announces Further Trans Mountain Pipeline Delays
  • 6 days API Announces Voluntary Methane Reduction Program
  • 6 days Statoil Plans $6B Development At Huge Arctic Oil Field
  • 6 days South Sudan Hopes Higher Oil Prices Will Restore Ravaged Economy
  • 6 days China Launches New Gas Pipeline Amid Soaring Demand
  • 6 days Total’s $16B Ultra-Deepwater Project In Jeopardy
  • 6 days OPEC’s November Output Drops 300,000 Bpd
  • 6 days Exxon’s Beaumont Refinery To Remain Partially Offline
  • 6 days Engie To Ditch Natural Gas By 2050
  • 6 days Aberdeen University Launches World’s First Oil Decommissioning Simulator
  • 7 days China Orders Regions To ‘Regulate’ Surging Natural Gas Prices
  • 7 days Exxon Looks To Enter Egypt’s Upstream Oil And Gas
  • 7 days Tax Bill Supports Oil And Gas Industry, API President Says
  • 9 days Blackstone Teams Up With Brazilian Partner To Buy $6B Gas Pipeline
  • 9 days Tesla Faces New Sales Challenges In Germany
Why Oil Prices Bounced Back

Why Oil Prices Bounced Back

Trump’s decision to officially recognize…

Gulf Of Mexico Production Recovers After Recent Slump

Gulf Of Mexico Production Recovers After Recent Slump

Hurricane outages dominated the Gulf…

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