15.22 -0.04 (-0.26%)
After hours: 7:37PM EDT
|Bid||15.20 x 40000|
|Ask||15.25 x 42300|
|Day's Range||14.78 - 15.43|
|52 Week Range||11.89 - 17.90|
|Beta (3Y Monthly)||0.31|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.23 (1.59%)|
|1y Target Est||19.76|
(Bloomberg) -- An auction next month of oilfields in Brazil may be the priciest ever held, raising at least $50 billion in licensing fees and compensation, according to people familiar with government estimates.Exxon Mobil Corp., Royal Dutch Shell Plc and other energy giants are set to vie for deep-sea deposits that could hold 15 billion barrels of oil, almost twice as much as Norway’s reserves. Winners at the Nov. 6 auction are expected to pay $25 billion in licensing fees, plus share a portion of their production with the government.In addition, bidders will need to negotiate payments to state-controlled Petroleo Brasileiro SA for investments it has already made in the area. Those payments could add another $25 billion to $45 billion in costs, according to officials familiar with government figures who asked not to be named because the information is private.The auction is unique in part because one of the four areas being offered is already gushing more than half of the daily output from Venezuela. It’s a rare opportunity for an industry more accustomed to exploring riskier offshore prospects that can take a decade or more to develop.Fourteen producers -- including Petrobras -- have signed up to participate in the auction.Petrobras didn’t respond to requests for comment. The Brazilian oil regulator, known as ANP, declined to comment on the total amount the auction could raise. It said payments to Petrobras will be negotiated between the company and its partners, without government interference.The offerings are at the heart of the pre-salt, a giant expanse of oil deposits about the size of Ohio trapped beneath a layer of salt under the Atlantic seabed. The four prospects -- Buzios, Itapu, Sepia and Atapu -- are estimated to hold as much as 15 billion barrels of recoverable crude, according to a study by Houston-based consultancy Gaffney, Cline & Associates.Buzios is already Brazil’s second-largest field by production, with output of about 425,000 barrels a day -- at a time when Venezuelan production is running at 700,000. It has four platforms that are tapping about a dozen wells, with room for other wells to be drilled and the current ones to be ramped up further.Payment TermsBrazil’s federal audit court estimates the compensation to Brazil’s oil company could ultimately reach $45 billion under initially proposed guidelines. It has recommended the government lower certain parameters like the estimated price of Brent crude to make the deals more attractive, according to the people familiar. The court’s estimates and recommendations for the sale are confidential. Valor newspaper said on Tuesday the revisions including the reference Brent price could lower the estimated top compensation number by at least $6.3 billion.The Brazilian Petroleum Institute, an industry group that represents some of the bidders, estimates the payments to Petrobras will be worth between 120 billion and 130 billion reais ($29 billion-$31 billion). A study by Wood Mackenzie Ltd. released Monday estimates $24 billion.The rules do not specify how the payments to Petrobras should be settled. A combination of cash, crude and investments over many years is a possibility. Licenses last for three decades. Winning bidders will have 18 months to reach an agreement with Petrobras before the oil regulator is required to step in as mediator.As for the licensing payments, the largest chunk of the $25 billion will be due this year and the remainder in 2020, all in cash.A 2009 auction of development rights for Iraqi oil included larger reserves, but was done using different methodology under which companies were bidding for the right to service the oil fields and get paid per barrel by the government.(Updates with compensation price revisions in ninth paragraph.)To contact the reporter on this story: Sabrina Valle in Rio de Janeiro at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Tina DavisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Switzerland has pressed charges against a person in a corruption probe of Brazilian state oil company Petrobras and construction firm Odebrecht, the attorney general's office said, adding it was seeking to conclude the case quickly. It has become one of the biggest corruption affairs in Latin America and resulted in the prosecution and imprisonment of former President Luiz Inacio Lula da Silva, among others. The unnamed suspect is a person of Swiss-Brazilian origin who already faces criminal proceedings in Brazil and Portugal.
Swiss prosecutors have pressed charges against an individual in a corruption probe into Brazil's state-owned oil company Petrobras and construction firm Odebrecht, the attorney general's office in Bern said on Tuesday. The Swiss authorities said they suspected the person, who acted as a financial middleman, of complicity in the bribery of public officials and money laundering.
The recent departure of a senior official at Brazilian development bank BNDES does not change the bank's strategy and was part of the normal turnover at the institution that oversees privatizations, its chief executive said on Friday. "Nothing changes in the bank's strategy, nothing changes in its plans," Gustavo Montezano said in a statement to reporters. Two people with knowledge of the matter told Reuters on Thursday that the majority of BNDES' board voted to dismiss director Andre Laloni, who requested a leave of absence last week amid disagreements over asset sales.
Brazilian state-run oil firm Petroleo Brasileiro SA posted a significant production boost in the third quarter, as heavy investments in its deepwater, pre-salt zone showed signs of paying off. Investors and analysts have been watching the firm's production figures closely in recent quarters, and the company's ability to swiftly boost output is key to its current strategy. In a Thursday securities filing, Petrobras, as the firm is commonly known, said it produced 2.878 million barrels of oil equivalent per day (boepd) in the third quarter, up 9.3% from the previous quarter and 14.6% from the same period a year ago.
Brazil's Senate passed the main text of a bill late on Tuesday defining the distribution of proceeds from a blockbuster auction of oil prospecting rights, a key milestone for the enormous offshore region known as TOR - the 'transfer-of-rights' area. The bidders who win exploration and production rights in the massive Nov. 6 auction will be obliged to pay the government a combined signing bonus of some 106.5 billion reais ($25.8 billion), making it the largest oil bidding round in history, according to Brazilian authorities. The fields are unique as Brazilian state-run oil firm Petroleo Brasileiro SA, better known as Petrobras, has already done significant exploration work in the area.
TOTAL (TOT) further expands operations in Brazil through a new exploration license in the C-M-541 deep offshore block, located in the pre-salt Campos Basin.
France's Total SA , the big winner in a Brazilian auction of offshore oil concessions on Thursday, said it will not participate in a bigger auction scheduled for Nov. 6 of the so-called Transfer of Rights area in Brazil's pre-salt region. The company's chief executive officer, Patrick Pouyanné, said in a statement that was because the competitive bidding rounds were for non-operating stakes. A consortium led by Total won the exploration and production rights for an offshore block near the pre-salt region on Thursday, agreeing to pay the government a signing bonus of 4 billion reais ($978 million).
Brazilian president Jair Bolsonaro on Thursday gave his full backing to Economy Minister Paulo Guedes, an apparent effort to quash recent press speculation of a rift between the two. Speaking at conference in Sao Paulo after Guedes himself had addressed the audience, Bolsonaro said Guedes has total control over economic policy and that there is no "plan B". On Monday Guedes told Reuters there was "zero basis" for a Brazilian newspaper report that he plans to leave Bolsonaro's cabinet early next year after a landmark overhaul of the country's pension system has cleared Congress.
Ten companies on Thursday agreed to pay more than $2 billion for the exploration and production rights in 12 offshore oil blocks in Brazil, in what could be a promising sign for even bigger upcoming oil auctions. The most heavily sought after areas in the Thursday auction directly border Brazil's so-called pre-salt area, a coveted zone in which billions of barrels of oil are trapped under a thick layer of salt beneath the ocean floor. The biggest move came from a France's Total SA, which, in a consortium with Malaysia's Petronas and Qatar Petroleum, dropped 4.029 billion reais for one block abutting the pre-salt area.
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(Bloomberg) -- Brazil’s efforts to uncover the origin of oil washing up on more than 130 beaches along its pristine northeastern coastline are pointing to Venezuela as the likely culprit.Brazilian Environment Minister Ricardo Salles on Wednesday said that a report from Brazil’s state-controlled oil company Petroleo Brasileiro SA indicates that the oil originated from Venezuela, a country suffering an economic crisis after years of mismanagement and widespread corruption.Rio de Janeiro-based Petrobras said that molecular studies of the spilled oil show it wasn’t produced in Brazil or sold by the company, and didn’t confirm or deny the origin of the crude.“This oil that is arriving, very probably is from Venezuela,” Salles told lawmakers during a hearing. “It is oil that comes from a foreign tanker navigating close to Brazil’s coast.”Petrobras Chief Executive Officer Roberto Castello Branco said on Tuesday that about 500 barrels were spilled, which means it wasn’t simply from an oil tanker that was being cleaned. He said that it could have come from an oil tanker that sank, an accident when loading oil from one tanker to another, or from a criminal act.The oil spill is putting Brazil back in the spotlight for environmental disasters. A surge in fires in the Amazon rainforest in August sparked an international backlash against President Jair Bolsonaro, a social conservative who supports developing natural resources in the Amazon. Two massive mining waste dams have collapsed since 2015, claiming hundreds of lives and polluting waterways in several states.Brazil first started noticing the oil on Sept. 2 and began cleanup efforts and investigations into the cause, including a criminal probe by federal police, according to the Ibama environmental agency.To contact the reporter on this story: Peter Millard in Rio de Janeiro at email@example.comTo contact the editors responsible for this story: Tina Davis at firstname.lastname@example.org, Carlos Caminada, Reg GaleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Transocean's (RIG) vital technological breakthrough via its operational and safety upgrade aims at lowering the usual fuel consumption by 14%, thereby curbing the toxic NOx and CO2 emissions.
Brazilian state-run oil firm Petrobras has formally begun the sale process for eight onshore exploration blocks in the northeastern state of Bahia, the company said on Monday. In a securities filing, Petroleo Brasileiro SA, as the company is formally known, said it had begun the teaser phase for the blocks in the Reconcavo Basin, in which potential buyers have access to basic technical information about the assets. The sale, the value of which is not clear, is one of dozens of divestments by Petrobras, which is aggressively selling off non-core assets to cut debt.