As reported by Reuters, Brazil’s biggest-ever oil auction frustrated expectations on Wednesday, as high prices and the dominant role of state-run oil company Petrobras scared off global oil majors.
Petrobras and Chinese state firms CNOOC and CNODC made the only bids out of over a dozen major oil firms who had registered. Two of four blocks on offer got no bids.
Brazil’s government received approximately 70 billion reais (US$17 billion) of signing fees from the minimum bid by Petrobras in a consortium with CNOOC and CNODC for the round’s biggest block, Buzios, and a lone Petrobras bid for the smallest block, Itapu.
On the Buzios block, Petrobras took a 90% stake while 5% each went to CNOOC and CNODC, a unit of China National Petroleum Corp.
Petrobras already has four operating platforms in Buzios, and plans to install four more in Buzios and the other nearby blocks by 2023.
Brazil’s sixth pre-salt bidding round, a much more conventional oil auction is scheduled for today (7 November).
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/07112019/petrobras-cnooc-and-cnodc-acquire-stakes-in-brazils-biggest-oil-auction/
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Part of the company's 10-year plan includes a free cash flow of approximately US$50 billion based on a real WTI price of US$50/bbl and annual capital expenditures averaging less than US$7 billion over the decade.