Brazil Offshore Oil Drilling Rights Draw Interest at Auction
- 7 years ago
Brazil Offshore Oil Drilling Rights Draw Interest at Auction
To make Brazil even less attractive, Mexico, Guyana
and several African countries have opened their rich deepwater fields to foreign companies, leading to expectations of new large-scale production over the next decade.
“We want to promote a competitive exploration and production market in Brazil.” He added
that the presence of Exxon Mobil and other international companies that had abandoned Brazil gave him reason for optimism.
The auction follows a series of reforms started last year, dropping the designation of Petrobras as sole operator
and lowering requirements for allotted Brazilian content in machinery and construction for exploration and production.
Seventeen companies won 37 blocks, including Exxon Mobil, which won eight blocks, mostly in partnership with Petrobras, the national oil company.
The government also guaranteed that those winning exploration rights would own the oil and natural gas
that is produced, minus royalties, taxes and a government share of profits.
The price of oil at that time had climbed above $100 a barrel, political turmoil roiled North Africa
and the Middle East, and oil companies sought new reserves in politically stable countries.
To make Brazil even less attractive, Mexico, Guyana
and several African countries have opened their rich deepwater fields to foreign companies, leading to expectations of new large-scale production over the next decade.
“We want to promote a competitive exploration and production market in Brazil.” He added
that the presence of Exxon Mobil and other international companies that had abandoned Brazil gave him reason for optimism.
The auction follows a series of reforms started last year, dropping the designation of Petrobras as sole operator
and lowering requirements for allotted Brazilian content in machinery and construction for exploration and production.
Seventeen companies won 37 blocks, including Exxon Mobil, which won eight blocks, mostly in partnership with Petrobras, the national oil company.
The government also guaranteed that those winning exploration rights would own the oil and natural gas
that is produced, minus royalties, taxes and a government share of profits.
The price of oil at that time had climbed above $100 a barrel, political turmoil roiled North Africa
and the Middle East, and oil companies sought new reserves in politically stable countries.