Arab Today, arab today key test for brazil as it readies major oil auction
Last Updated : GMT 01:44:06
Arab Today, arab today
Arab Today, arab today

Key test for Brazil as it readies major oil auction

Arab Today, arab today

Arab Today, arab today Key test for Brazil as it readies major oil auction

Rio De Janeiro - AFP

After almost six years of waiting, Brazil\'s energy giant Petrobras is readying a major auction this month of its deep-water \"pre-salt\" oil reserves, despite fears of excessive state meddling. The October 21 Libra oil field auction in Rio de Janeiro -- which experts say could put 12 billion barrels of oil up for grabs -- has been highly anticipated as the start of the sell-off of the total deep-water reserves. The Libra field is part of a vast discovery of reserves announced in 2007. The area is spread over 149,000 square kilometers (57,530 square miles) in the Atlantic Ocean -- the biggest find in two decades. According to official estimates, the total reserves -- buried beneath several kilometers of ocean, bedrock and hot salt beds -- could hold more than 100 billion barrels of high-quality recoverable crude and could turn Brazil into one of the world\'s top exporters. Last May, the government oversaw auctions for some 300 non pre-salt blocs, most of them located in hitherto unexplored regions off the country\'s north and northeast. That attracted unprecedented interest from around the world and another auction of 240 land-based blocs of gas will be held next month. But experts say the Libra sale -- the first of the pre-salt reserves -- is the big prize. Betting big on Libra The field in the country\'s southeast, some 230 kilometers (140 miles) off the coast of Rio, could yield a million barrels of crude per day within five years, experts say. Currently, Brazil produces two million barrels a day. It is looking to boost that output to five million bpd by 2020, thanks in large part to the pre-salt reserves. Eleven oil firms will take part in the auction, but Petrobras will have sole operating rights and is guaranteed at least a 30 percent concessionary stake under the terms of a 2010 law. The law, passed during the tenure of then president Luiz Inacio Lula da Silva, aims to channel a large chunk of Brazil\'s oil revenue into education and health. \"The scenario has changed with pre-salt and the 2010 law for the sector. But we are optimistic. Today, Brazil has what is most important for the sector -- oil and gas,\" Ricardo Savini, head of Deloitte/Brazil\'s Oil and Gas Center of Excellence, told AFP. \"There will be three auctions this year, exploration activity is resuming,\" added Savini. Petrobras\' investment plans through 2016 come in at $236 billion -- 60 percent of that earmarked for oil and gas exploration as well production. US players stay away Despite the massive international interest in the Libra sale, US players will be conspicuously sitting it out. \"The absence of US giants is due to excessive state intervention\" in the sector, said Adriano Pires of Brazil\'s Infrastructure Center. Pires added that the creation of a new state firm to handle the pre-salt reserves, PPSA, \"keeps private investors away.\" \"During those six years without auctions, foreign investors went to look elsewhere,\" he noted. Countering the doubters, Alexandre Szklo, energy planning expert from Rio Federal University (COPPE/UFRJ), says: \"Libra is a very promising field and the low geological risk means there is a larger than usual state intervention.\" He believes Libra \"will act as a test case\" for the future of pre-salt exploration in Brazil. While the Americans are staying on the sidelines, European firms are in on the act, including Anglo-Dutch giant Shell and France\'s Total. So is China National Petroleum Corporation (CNPC). For Szklo, investing in a changing energy environment can take many forms, with investment criteria not just based on profit margins. \"Private American capital has been diversifying its portfolio: Esso, for example, is making large-scale acquisitions of shale gas producers in the United States and Canada,\" he said. And \"Chinese companies are now going to start having a major role -- these companies are looking above all for energy security, before profitability.\" Brazil\'s National Petroleum Agency (ANP) meanwhile said it was satisfied with the 11 firms that will join the Libra auction. Seven of them are indeed in the top 11 global industry players by market capitalization: CNPC, ranked 2nd; Shell (3rd); Colombia\'s Ecopetrol (6th); Petrobras (7th); Total (8th); China National Offshore Oil Corporation (CNOOC) (ranked 10th), and Repsol/Sinopec (Sinopec – 11th), according to the ANP. Even so, Friday saw credit rating agency Moody\'s downgrade Petrobras\' long-term debt rating from A3 to Baa1. The company carries net debt of $36 billion and Moody\'s indicated it foresaw leverage hitting peak levels beyond those of its industry peers through end 2014.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today key test for brazil as it readies major oil auction Arab Today, arab today key test for brazil as it readies major oil auction

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today key test for brazil as it readies major oil auction Arab Today, arab today key test for brazil as it readies major oil auction

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Second US judge orders freeze

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Silent Republicans have their reasons

GMT 16:55 2017 Thursday ,19 October

Silent Republicans have their reasons
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Hussein Fahmy happy for honoring in festival

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday