Brazil Onshore Assets for Sale produce 2% of Output

Posted by Joseph R Fonseca
Saturday, March 05, 2016
Petrobras Headquarters

Brazil's state-run oil company Petroleo Brasileiro SA said on Friday it plans to sell its rights to 104 onshore oil and gas concessions, part of efforts to raise cash and focus increasingly scarce capital on more profitable offshore assets.

The company, known as Petrobras, said in a securities filing that 98 of the areas are producing fields. Oil output from those areas is about 35,000 barrels a day, or less than 2 percent of the company's petroleum output and less than some single wells in Petrobras' giant offshore Lula field.

The Petrobras statement did not say how much natural gas the areas produce. Six of the areas are still in the exploratory phase.

Small Brazilian and international oil companies have long called on the company to sell the bulk of its onshore oil and gas portfolio. They say that private companies can mobilize more capital to develop additional oil and gas from the areas more cheaply that the state-run giant.

Some of the small oil companies already working in Brazil are from the regions where Petrobras plans to sell assets and they hope their ownership of concessions will boost local investment and wealth creation.

Many of the fields, though, are in poor, politically sensitive areas in the states of Bahia, Sergipe and Rio Grande do Norte where Brazil's ruling Workers' Party has had strong support and where Petrobras jobs are important patronage posts.

Selling the fields will likely result in job cuts in those areas, said Jose de Oliveria Junior, a senior consultant to the Sergipe state energy secretariat.

With plunging oil prices, lower royalties and scarce resources at Petrobras to invest in less profitable onshore fields, Oliveria Junior said states like Sergipe are eager for private capital to help boost output.

Sergipe already has some privately-run fields that Petrobras sold to U.S. investors in the late 1990s.

Proceeds from the sales may also help Petrobras meet its goal of selling about $14 billion of assets this year to help trim its $130 billion in debt, the most of any oil company in the world.

(Reporting by Jeb Blount; Additional reporting by Brad Haynes in Sao Paulo; Editing by Chris Reese)
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Defense Appropriations Bill Includes $1 Bln for US Icebreaker

The U.S. Senate Appropriations Committee’s FY2017 Defense Appropriations Bill has included $1 billion in funding to accelerate construction of a new polar icebreaker for the U.

Higher Capesize Demand Pushes up Baltic Index

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Friday buoyed by higher demand for capesize vessels.

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

Energy

GloMEEP Project Forges Ahead with Train-the-Trainer Workshop

A global Train-the-Trainer workshop on energy efficiency has been delivered in China (23-27 May), preparing the personnel needed to cascade knowledge on energy

Hercules Offshore Filing for Bankruptcy Again

Hercules Offshore Inc said it planned to file for prepackaged Chapter 11 bankruptcy, just six months after the rig contractor emerged from bankruptcy protection.

Strike Idles 38 Oil Tankers at Fos-Lavera

Some 38 oil tankers have been held up at the Fos-Lavera oil port in southern France, the country's biggest, including 25 at harbour, up from 12 the previous day,

LNG

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

Höegh LNG Turns to Profit in 1Q

Höegh LNG returned to profit following a Profit after tax of USD 6.3 million for the first quarter of 2016, up from USD 4.0 million net loss in the fourth quarter 2015.

World’s Biggest LNG Buyer Becomes Seller

EDF Trading, a wholly-owned subsidiary of French power giant EDF, has signed an LNG sales and purchase agreement with Japanese LNG aggregator Jera Co Inc, one

News

Seaspan Acquires Eighth 14000 TEU Vessel

Seaspan Corporation (NYSE:SSW) announced today that it accepted delivery of a 14000 TEU containership, the YM Width. The new containership, which was constructed at CSBC Corporation,

1,076 Graduate from U.S. Naval Academy

The U.S. Naval Academy graduated 1,076 men and women at the annual graduation and commissioning ceremony May 27 at Navy-Marine Corps Memorial Stadium. U.S. Naval Academy Superintendent Vice Adm.

GloMEEP Project Forges Ahead with Train-the-Trainer Workshop

A global Train-the-Trainer workshop on energy efficiency has been delivered in China (23-27 May), preparing the personnel needed to cascade knowledge on energy

Government Update

1,076 Graduate from U.S. Naval Academy

The U.S. Naval Academy graduated 1,076 men and women at the annual graduation and commissioning ceremony May 27 at Navy-Marine Corps Memorial Stadium. U.S. Naval Academy Superintendent Vice Adm.

Details El Faro's Sinking Emerge from US Probe

U.S. investigators on Friday concluded two weeks of hearings into the sinking of cargo ship El Faro in a hurricane last fall that included reports the vessel had

Defense Appropriations Bill Includes $1 Bln for US Icebreaker

The U.S. Senate Appropriations Committee’s FY2017 Defense Appropriations Bill has included $1 billion in funding to accelerate construction of a new polar icebreaker for the U.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Pipelines Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1093 sec (9 req/sec)