|Bid||14.58 x 3100|
|Ask||14.59 x 27000|
|Day's range||14.44 - 14.60|
|52-week range||11.89 - 17.90|
|Beta (3Y monthly)||0.31|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||0.23 (1.60%)|
|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 reach $45 billion under 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.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.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 Davis, Reg GaleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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).
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.
(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.
Creditors of Brazilian oil platforms and rigs maker Sete Brasil have approved the sale of four oil exploration rigs to British company Magni Partners, two sources familiar with the deal told Reuters on Friday. The four rigs have a 10-year leasing contract with Petrobras , which will pay $299,000 per day for each rig when operational, one of the sources said. A representative of Magni Partners could not immediately be reached for comment.
Brazilian state-run oil firm Petrobras has in the last five years battled an epic corruption probe, a crippling recession and unsteady crude prices. Now, Brazil's most important company is facing yet another challenge: thieves are robbing millions of dollars worth of its fuel to sell on a thriving black market. Theft from Petrobras pipelines soared to a record high 261 incidents in the states of Rio de Janeiro and Sao Paulo last year, up from just one case in 2014, according to an August securities filing and statements made to Reuters by representatives of Petroleo Brasileiro SA , as the company is formally known.
Brazilian President Jair Bolsonaro said on Thursday that potential price fixing in the gas station industry needs to be investigated, reopening an old debate in Brazil over prices at the pump. Bolsonaro said on Facebook Live that gas prices at refineries are below what they were in the middle of last year even after state-run oil firm Petroleo Brasileiro SA hiked gas and diesel prices this week in response to an attack on Saturday on oil facilities in Saudi Arabia. Consumers are paying more than they should be, Bolsonaro said.
The weekend attacks on vital oil infrastructure in OPEC’s largest producer and the world’s top oil exporter Saudi Arabia could be a boon to Brazil
Brazilian President Jair Bolsonaro and Petrobras said on Monday the oil firm was not planning to immediately raise fuel prices in response to the attack in Saudi Arabia, showing the state-run firm may be open to overlooking market pricing norms for now. In an interview with Brazil's Record TV, Bolsonaro said he was told by Petrobras Chief Executive Roberto Castello Branco that while fuel prices set by the firm tend to follow international prices, the recent rise in oil prices was "atypical".
ExxonMobil (XOM) along with Murphy Oil and Enauta consents to pay $1.9 million for purchasing SEAL-M-505, SEAL-M-575 and SEAL-M-637 blocks in the offshore Sergipe-Alagoas Basin.
RIO DE JANEIRO/BRASILIA (Reuters) - The chief executive of a natural gas pipeline unit of Brazilian state oil firm Petrobras has been removed, the company told Reuters on Thursday, after a middleman in a graft scheme implicated him in plea bargain testimony. Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG), which operates a 1,610-mile pipeline transporting natural gas from Bolivia to Brazil, said its board approved the removal of Ivan de Sá on Wednesday at the request of Petrobras, its majority shareholder. TBG did not state the reason for his removal, nor offer any further details.
BRASILIA/RIO DE JANEIRO (Reuters) - A middleman in a graft scheme at Brazilian state oil company Petrobras has implicated the chairman of global energy trading firm Vitol in a bribery operation to obtain oil contracts, as well as two high-ranking executives at rival Trafigura and its former CEO, according to plea bargain testimony seen by Reuters. The individuals named in the previously unreported documents are Ian Taylor, the chairman of Vitol, as well as Claude Dauphin, the former chief executive and chairman of Trafigura. Trafigura co-head of oil trading José Larocca and chief operating officer Mike Wainwright were also implicated in the alleged scheme.