• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 6 hours Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 6 hours Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 6 hours Why I Think Natural Gas is the Logical Future of Energy
  • 6 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 5 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 16 hours Get on Those Bicycles to Save the World
  • 2 hours Iraq war and Possible Lies
  • 2 days The Dirt on Clean Electric Cars
  • 22 hours Satellite Moons to Replace Streetlamps?!
  • 22 hours Can “Renewables” Dent the World’s need for Electricity?
  • 1 day Owning stocks long-term low risk?
  • 16 hours Can the World Survive without Saudi Oil?
  • 1 day Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
The Implications Of A Fractured U.S., Saudi Alliance

The Implications Of A Fractured U.S., Saudi Alliance

With tensions between the United…

U.S. Shale’s Glory Days Are Numbered

U.S. Shale’s Glory Days Are Numbered

That decline rates in U.S.…

Only Shell Interested In Buying Brazil’s Pre-salt Oil

Shell truck

Shell was the only company expressing interest in purchasing crude oil produced in the pre-salt offshore zone that has attracted major interest from Big Oil. Reuters quotes a person familiar with the matter that the Anglo-Dutch supermajor was the only one that said it will take part in the auction for the oil set to take place next Wednesday.

The oil is Brazil’s portion of production from the prolific pre-salt zone, and bidding rules stipulate that bidders must share a portion of the oil with the government. While the setting of the condition for bidders was easy, it has taken Brazil several months to lay out rules for the marketing of the oil it receives from the companies exploiting the pre-salt layer.

Many Big Oil majors are already in Brazil, including Statoil, Shell, and Total. The Norwegian state oil company is developing the Carcara field—part of the prolific Santos Basin, in the pre-salt zone.

Shell is a strategic partner of Petrobras in the pre-salt layer, holding minority interests in the Libra and Lula fields and in other areas such as Sapinhoá, Lapa, and Iara, all of which are located in the Santos Basin. Total is partner of Shell, Petrobras, and CNPC in the Libra field, also in the Santos Basin and considered one of the biggest offshore discoveries in the pre-salt zone.

Related: Who’s To Blame For High Gasoline Prices?

Brazil has planned tow more pre-salt tenders for this year and next, with this year’s to take place on June 7. So far, 16 companies have qualified to take part in the bidding round—a record number. The country’s energy regulator ANP will offer four blocks in this round, two in the Campos Basin, and two in the Santos Basin. The watchdog has estimated it could attract more than US$900 million in signing bonuses.

The last bidding round, from October last year, raised US$1.9 billion in signing bonuses, with winners including Exxon, Equinor (Statoil), Shell, Total, and BP.

By Irina Slav 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