• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 12 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 22 hours Solving The Space Problem For America’s Solar Industry
  • 12 hours How Far Have We Really Gotten With Alternative Energy
  • 2 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 1 day If hydrogen is the answer, you're asking the wrong question
  • 5 days Investment in renewables tanking
  • 10 days "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
Ukraine's Energy Sector Surges Despite Adversities

Ukraine's Energy Sector Surges Despite Adversities

Despite severe infrastructural damage due…

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

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

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News