• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 1 hour Despite pressure about Khashoggi's Murder: Saudi Arabia Reassures On Oil Supply, Says Will Meet Demand
  • 3 hours Dyson Will Build Its Electric Cars in Singapore
  • 3 hours China Opens Longest Mega-Bridge Linking Hong Kong to Mainland
  • 6 mins The Balkans Are Coming Apart at the Seams Again
  • 15 hours Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 1 hour Why I Think Natural Gas is the Logical Future of Energy
  • 5 hours Can “Renewables” Dent the World’s need for Electricity?
  • 1 hour How Long Until We Have Working Nuclear Fusion Reactor?
  • 2 hours These are the world’s most competitive economies: US No. 1
  • 5 hours Satellite Moons to Replace Streetlamps?!
  • 16 hours EU to Splash Billions on Battery Factories
  • 15 hours Get on Those Bicycles to Save the World
  • 10 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
Can We Expect A Rebound Rally Next Week?

Can We Expect A Rebound Rally Next Week?

Despite recovering somewhat on Friday,…

Large Crude Build Forces Oil Prices Lower

Large Crude Build Forces Oil Prices Lower

Oil prices slipped on Wednesday…

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