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Chinese firms part of winning bid for Brazil oilfield
October 22, 2013, 8:47 am


Brazilian Oil Minister Edison Lobao said the pre-salt discoveries would more than double Brazil’s oil reserves [AP]

Two Chinese energy firms have won a 35-year production sharing contract to develop a pre-salt oil discovery in Brazil’s Libra oil field.

CNOOC Limited and CNPC gained the contract as part of a consortium including Petrobras, Shell and Total, according to a statement on CNOOC’s website.

Brazil’s National Petroleum Agency (ANP) Chief Magda Chambriard said after the auction that the companies are “among the world’s 10 most valuable in the energy branch”.

Petrobras holds 40 per cent of the stake as operator of the winning consortium while Shell and Total hold 20 per cent each, and CNPC and CNOOC hold 10 per cent each.

Brazilian Oil Minister Edison Lobao said the pre-salt discoveries would more than double Brazil’s oil reserves.

“We will finally do what the people have always wanted so much, which is to turn Brazil into a developed country,” said Lobao.

CNOOC Limited will pay 1.5 billion Brazilian reais (around $700 million) for its 10 per cent share, the company statement said.

Under the new rules for offshore auctions, Petrobras is the sole operator of the fields and must hold a minimum 30 per cent stake in them.

The new model also asks the winning consortium to pay a 15 billion real ($6.8 billion) bonus to the Brazilian government in advance.

Brazilian president Dilma Rousseff announced during the recent protests that the government will resubmit a bill to Congress demanding oil royalties be invested exclusively in education.

Source: Agencies

2 Responses to Chinese firms part of winning bid for Brazil oilfield

  1. Eraldo Marcelo Kopp Reply

    October 23, 2013 at 12:02 am

    Very interesting but this deal is pure junk considering the funding distribution afterwards! Where can we find the number of crude drums? Where are the true numbers?????? These Brazilian politicians are lairs and scoundrels beyond your widest imagination! The local media is a pure piece of junk! They cover the crap caused by the politicians with nomenclatures so nicely spoken and the people always get deceived!
    This oil deal is going bust! Most of it wilt be stolen and only a fraction going towards education!
    The regular CEO’s, for the most part, are responsible but the government workers from the federal government are scoundrels without a shadow of a doubt!
    Why is it the Brazilian government does not show the deposits with width, depth, length and what it takes for each of them to become operational? It requires a neutral overseas company reputable with overseas inspectors for proper evaluation!
    Petrobras has not enough money! THIS IS TRUE! So much was promised 7 years ago and thus far Petrobras is in debt!
    Comparing what they had projected 7 years ago X what it is today, simply lacks…
    The president is wishy washy!!! Never gets an objective completed! The nation is nearly stagnated and there is no growth relevant for so much work! Complete schedule in this country is nearly unheard of! The politicians simply say “do what you can and lets wait and observe what goes on”! Never having the ability of being transparent and so they steal and steal and steal… China is our hope when their system becomes available and so every section of the government recorded with transactions!
    We have lots of cleaning to do, starting with a true completed day schedule!!!
    Be positive, Brazil has lots of potential and, at the moment, a pathetic actual government!

  2. Greg A. Reply

    November 27, 2013 at 1:07 am

    Yes, it would be interesting to know how many pennies for every dollar the people of Brazil stand to gain (directly or indirectly) from this joint venture…

    Good read, thanks for posting,

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