shell bets big on brazil as oil majors snap up offshore blocks
Last Updated : GMT 09:03:51
Almaghrib Today, almaghrib today
Almaghrib Today, almaghrib today
Last Updated : GMT 09:03:51
Almaghrib Today, almaghrib today

Shell bets big on Brazil as oil majors snap up offshore blocks

Almaghrib Today, almaghrib today

Almaghrib Today, almaghrib today Shell bets big on Brazil as oil majors snap up offshore blocks

Shell bets big on Brazil as oil majors snap up offshore blocks
Rio de Janeiro - Al Maghrib Today

 Oil major Royal Dutch Shell won half the blocks awarded in Brazil’s deepwater oil auction on Friday, while rival BP took two blocks and Exxon Mobil Corp. one in a historic opening of the pre-salt play to foreign operators.
Brazil awarded six of the eight blocks on offer in the auction for the rights to pump oil from the country’s coveted pre-salt region, where billions of barrels of oil are trapped below thousands of feet of salt in the country’s Atlantic waters.
President Michel Temer said development of the blocks would lead to 100 billion reais ($30.84 billion) in investment from the winning companies and 130 billion reais in royalties and other revenues for the cash-strapped state.
The wins bolster Shell’s position as the largest foreign operator in Brazil’s offshore oil sector, second only to state-run oil giant Petroleo Brasileiro (Petrobras), adding more than 1,700 square kilometers (656 square miles) to its deep-water Brazil portfolio.
The Anglo-Dutch oil major won one area in a consortium with France’s Total SA, another with Petrobras and Repsol-Sinopec, and a third with Qatar Petroleum International (QPI) and China’s CNOOC.
Shell has said it is confident it can pump oil from the pre-salt fields at below $40 a barrel.
“These winning bids were submitted after our thorough evaluation and add strategic acreage to our ... global deep-water growth options,” Shell Upstream Director Andy Brown said. Rival BP Plc, which is active in Brazil but not yet producing oil, took two blocks on Friday.
“We see the government of Brazil being more supportive of foreign companies entering Brazil,” BP Latin America President Felipe Arbelaez said after the rounds.
“There are high-quality assets. We believe that the assets here will be resilient in any price environment.”
Brazil earned 6.15 billion reais in signing bonuses for the six fields that it awarded in the auction.
Temer’s government has enacted reforms to make the energy sector more attractive to foreign investment, and for the first time international oil firms will be allowed to operate fields in the pre-salt.
Countries worldwide sitting on oil and gas reserves are keen to pump it before it becomes less valuable as global policies to address climate change kick in.
The opposition in Brazil has pushed back against the reforms and the auction was delayed by three hours on Friday after a federal judge issued an injunction to suspend the process at the behest of the leftist Workers Party, which opposes the privatization of oil production.
That left top executives from the world’s largest oil companies milling around in the hotel that hosted the auction, in an upscale seaside neighborhood in Rio de Janeiro.
US major Exxon Mobil, whose 10-block win in last month’s Brazilian auction was seen by many as a prelude to a big play on Friday, took just one block as part of a consortium with Norway’s Statoil ASA and Petroleos de Portugal SA, a unit of Galp Energia SGPS SA. Two blocks got no bids.
But Exxon bought a stake in a nearby block from Statoil for $1.3 billion, Statoil said, soon after the round.
“Our full intent is to get right after the Brazil acreage,” Jeff Woodbury, Exxon’s head of investor relations, said on a conference call following the auction.
The quality of reserves and the reforms have made Brazil an important target for oil majors, even though they have had less appetite for capital-intensive mega projects since crude prices crashed in 2014.
Peroba, which was clinched by Petrobras, BP and China National Oil & Gas Exploration and Development Corp, boasts an estimated 5.3 billion barrels of oil while Carcara, won by Statoil, Exxon and Petrogal, is thought to have some 2.2 billion barrels of oil.
“Brazil’s offshore is one of the last major plays out there that’s in its infancy,” said Brian Youngberg, an oil industry analyst at Edward Jones.
“Companies that are still interested in the big elephants out there, like Exxon and Shell, are aggressively pursuing them.”
Brazil has high hopes for the volume of oil the companies can pump from the blocks. Brazilian oil output could double to more than 5 million barrels per day (bpd) by 2027, compared with the 2.6 million bpd produced in August, regulator ANP has said.
Two blocks on offer at the auction were not placed. But ANP chief Decio Oddone still considered the rounds a success.
“A result in which 75 percent of offered areas are sold is a resounding success anywhere on the planet according to any point of view,” he said. “Brazil returned to the oil and gas sector with this auction.”

Source: arabnews

 
almaghribtoday
almaghribtoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

shell bets big on brazil as oil majors snap up offshore blocks shell bets big on brazil as oil majors snap up offshore blocks

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

shell bets big on brazil as oil majors snap up offshore blocks shell bets big on brazil as oil majors snap up offshore blocks

 



Almaghrib Today, almaghrib today Skincare PR Performance Full Year 2017

GMT 09:22 2018 Monday ,22 January

Skincare PR Performance Full Year 2017
Almaghrib Today, almaghrib today New hunt for flight MH370 gets under way

GMT 11:03 2018 Wednesday ,24 January

New hunt for flight MH370 gets under way
Almaghrib Today, almaghrib today Modern colorful bedroom renovation

GMT 10:57 2017 Thursday ,21 December

Modern colorful bedroom renovation
Almaghrib Today, almaghrib today Puigdemont candidate for Catalan president

GMT 13:56 2018 Tuesday ,23 January

Puigdemont candidate for Catalan president
Almaghrib Today, almaghrib today Turkey detains dozens more

GMT 10:47 2018 Wednesday ,24 January

Turkey detains dozens more
Almaghrib Today, almaghrib today The Rake announces editorial updates

GMT 10:46 2018 Tuesday ,16 January

The Rake announces editorial updates
Almaghrib Today, almaghrib today Europe brings on charm and blue skies

GMT 11:51 2018 Tuesday ,23 January

Europe brings on charm and blue skies
Almaghrib Today, almaghrib today For the Variety of Interior Design Styles

GMT 10:46 2017 Tuesday ,19 December

For the Variety of Interior Design Styles
Almaghrib Today, almaghrib today US Christian tourists see deep meaning

GMT 13:44 2018 Monday ,22 January

US Christian tourists see deep meaning
Almaghrib Today, almaghrib today Amazon to open first cashierless shop

GMT 10:03 2018 Tuesday ,23 January

Amazon to open first cashierless shop

GMT 11:14 2017 Saturday ,09 December

Bitcoin surges towards $17,000

GMT 12:37 2017 Tuesday ,21 November

Merkel's fate in balance as German coalition

GMT 10:50 2017 Saturday ,29 April

Dubai welcomes over 1.6m Saudi travelers in 2016

GMT 10:44 2011 Wednesday ,28 December

Afghanistan signs \'$7 bn\' oil deal with China

GMT 09:57 2017 Wednesday ,30 August

Guatemala court overrules leader's order expelling

GMT 03:01 2016 Monday ,25 July

Flood death toll rises to 130 in nourth China

GMT 14:10 2012 Monday ,20 February

Egypt more precious than sight

GMT 14:25 2013 Sunday ,30 June

Americans spend 23 hours a week online

GMT 00:29 2012 Thursday ,12 January

Chalet Girl

GMT 13:40 2011 Monday ,11 July

DEWA launches Al Barshaa substation

GMT 07:11 2017 Thursday ,16 February

Intermittent rain on Thursday

GMT 14:17 2011 Tuesday ,31 May

Abu Dhabi airport passenger, cargo up 15%

GMT 20:00 2017 Sunday ,08 January

Why Tehran claims its war in Syria is defensive

GMT 08:21 2011 Thursday ,26 May

Air India airline fined for fake visas
Almaghrib Today, almaghrib today
 
 Almaghrib Today Facebook,almaghrib today facebook  Almaghrib Today Twitter,almaghrib today twitter Almaghrib Today Rss,almaghrib today rss  Almaghrib Today Youtube,almaghrib today youtube  Almaghrib Today Youtube,almaghrib today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

.almaghribtoday .almaghribtoday .almaghribtoday .almaghribtoday
almaghribtoday almaghribtoday almaghribtoday
almaghribtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
almaghribtoday, Almaghribtoday, Almaghribtoday