• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 24 mins Could Venezuela become a net oil importer?
  • 7 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 4 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 10 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 4 hours Why is permian oil "locked in" when refineries abound?
  • 15 mins Gazprom Exports to EU Hit Record
  • 7 mins Could oil demand collapse rapidly? Yup, sure could.
  • 3 mins Oil Buyers Club
  • 2 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 2 hours Oil prices going down
  • 22 hours Teapots Cut U.S. Oil Shipments
  • 18 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 3 hours EVs Could Help Coal Demand
  • 12 hours Saudi Arabia turns to solar
  • 22 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 10 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
The Next Stage In Perovskite Solar Development

The Next Stage In Perovskite Solar Development

Perovskite photovoltaic cells have long…

Australia Looks To Tackle Its Looming Gas Shortage

Australia Looks To Tackle Its Looming Gas Shortage

The world’s soon-to-be top liquefied…

Exxon Snaps Up 8 Brazil Offshore Blocks

Brazil offshore

ExxonMobil snapped up eight offshore exploration blocks in the latest Brazilian bid round on Thursday, leading Big Oil’s aggressive move on acreage next to the coveted pre-salt layer that resulted in a record-high signature bonus proceeds for the government, as oil majors were eager to get into the area ahead of presidential elections later this year.

Some experts had expected that this auction and one under production sharing contracts (PSCs) scheduled for June could attract higher-than-usual bids because Brazil is holding a wide-open presidential election in October.

The most likely leftist candidate, Ciro Ferreira Gomes, has said that he would expropriate oil assets bought by private companies if he won the election.

Of the acreage that Exxon won on Thursday, the U.S. supermajor will operate six of the eight awarded blocks. The blocks extend the company’s acreage in Brazil to more than two million net acres, making it one of the largest acreage holders among international companies in Brazil.

“This acreage in Brazil’s pre-salt play will provide excellent opportunities to deploy our deepwater expertise,” Steve Greenlee, president of ExxonMobil Exploration Company, said.

One of the blocks, in which ExxonMobil will have 40 percent and will be operator, Campos SC-AP5 C-M-789, had the biggest signature bonus offered for one block – US$853 million (2.82 billion Brazilian Real), Brazil’s oil regulator ANP said. This 15th bidding round raised the largest proceeds for Brazil ever in this kind of concession bidding rounds—US$2.42 billion (8 billion Real).

Related: Mexico May Have Just Held Its Last Oil Auction

Apart from Exxon and the Brazilian government, the other big winners in the auction were Statoil and Shell that already have acreage offshore Brazil and were aiming to further expand their positions. Statoil partnered with Exxon for two of the four blocks it gained access to, and with BP for the other two blocks.

“This award is in line with Statoil’s exploration strategy to build on core positions in prolific and proven basins,” said Tim Dodson, executive vice president for Exploration at Statoil.

Shell, for its part, secured one exploration block on its own, and three in joint bids with Chevron, Petrobras, and Petrogal Brasil. Shell will operate two of the four awarded blocks, bringing its total operated presence offshore Brazil to 18 blocks.

“This bid round offers significant potential for additional deep-water discoveries,” Andy Brown, Upstream Director at Shell, said.

A total of 12 companies acquired 22 offshore blocks, Brazil’s regulator said. On June 7, Brazil will hold the 4th Production-sharing Round for areas located in the pre-salt layer.

By Tsvetana Paraskova 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