En Español

Very usefull links


News links




Dow Jones

Oil price



Views and News





Petrobras and Exxon in strategic partnership talks

Bloomberg/Dado Galdieri

Petrobras offshore oil platform in Guanabara Bay. Brazil company says in statement no talks are ongoing. Potential outcome could go beyond bidding for offshore blocks

Petroleumworld 05 11 2017

Exxon Mobil Corp. and Petrobras have held talks on a strategic partnership that could involve multiple assets in Brazil and overseas in different segments of the industry, similar to the $2.2 billion deal signed with Total SA in December, said people familiar with the conversations.

Such a deal could give Exxon access to oil fields and infrastructure in Brazil while state-controlled Petroleo Brasileiro SA could gain from Exxon's expertise in production, refining and distribution, the people said. The company clarified in a statement Tuesday that there is no ongoing negotiation aiming at a strategic alliance with Exxon.

“Petrobras stresses, however, that it's constantly in touch with companies in the oil and gas sector to evaluate opportunities and share experience,” the company said in the statement.

International oil companies are taking a closer look after Brazil eased nationalist regulations and opened the market to more competition. Carla Lacerda, Exxon's country chief, said earlier this month that the U.S.-based oil giant sees great opportunities in Brazil. Last week, Petrobras Chief Executive Officer Pedro Parente met in Houston with both Lacerda and BP Plc's head of Latin America, Felipe Arbelaez, the people said, asking not to be named because the discussions were private.

Arbelaez confirmed that he and Parente had talked in “a number of meetings.” He said that with the policy changes being undertaken by Brazil's government, “all companies are reviewing their Brazil strategy.”

Lauren Kerr, an Exxon spokeswoman, declined to comment. “As a matter of practice we don't comment on rumors or speculation,” she said.

In December, France-based Total agreed to buy stakes in Brazilian oil fields and energy infrastructure in a $2.2 billion deal that is expanding its presence in Latin America's largest economy.

Total's Deal

That agreement included stakes in the Iara and Lapa offshore prospects, and gives Petrobras the option to buy into a field in the Gulf of Mexico, the Rio de Janeiro-based company said at the time. Total also acquired 50 percent of two thermoelectric plants in the Bahia area and the right to use a regasification unit in the city. It may study more purchases from Petrobras, Total Chief Executive Officer Patrick Pouyanne said when the deal was announced.

Other European oil producers have also moved to grab a share of the deep-water discoveries that are driving Brazil's production growth. Statoil ASA bought Petrobras's stake in the Carcara find last year in a $2.5 billion deal, and Royal Dutch Shell Plc expanded in the pre-salt region through its acquisition of BG Group Ltd.

In recent months Michel Temer's government has removed Petrobras' exclusivity to operate in the pre-salt, and eased buy-in-Brazil requirements for platforms and equipment. Only one pre-salt field, the giant Libra discovery, has been auctioned in this decade, and under terms that guaranteed Petroleo Brasileiro SA, as it is formally known, control of operations.

While single wells in the pre-salt region can produce more than 40,000 barrels a day, among the most productive in the world, Exxon previously had a rare case of exploration failure in at a concession it abandoned in 2012.

"We are here to say we are going to try again," Lacerda said at an event in Houston last week. " Exxon Mobil sees great opportunities in Brazil."

Story by Sabrina Valle from Bloomberg

bloomberg.com 10 07 2017

We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

IESA l Instituto de
Estudios Superiores
de Administración,



May 24-25, La Jolla, California







Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.