Tag Archives: Petrobras

Petrobras Brasil opens sales processes for the old Marlim oil cluster | Instant News


FILE PHOTO: The logo of the Brazilian state-owned Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / Photo File / Photo File / Photo File

RIO DE JANEIRO (Reuters) – Petroleo Brasileiro SA from Brazil PETR4.SA is preparing to sell a 50% stake in the marine oil cluster in its legacy, the company said Monday in a filing.

In production since the 1980s in the Campos Atlantic Ocean basin, the giant Marlim cluster has four fields – Marlim, Voador, Marlim Leste and Marlim Sul – producing 217,000 barrels of oil per day, or nearly 10% of the company’s total production.

The sale, at an early stage, is part of Petrobras’ plan to sell non-core assets to cut debt and focus investment in the world’s largest deepwater discovery this century, in the so-called pre-salt region.

Newer pre-saline deposits, found under a thick layer of salt on the seabed in Brazilian waters, have increased rapidly in the last decade and are responsible for more than 70% of Petrobras production.

Marlim was once the largest oil field with more than 500,000 barrels per day, Marlim has experienced a decline in production in the last decade. At present, Marlim Sul and Marlim are Brazil’s sixth and eighth largest oil fields, respectively. Marlim Sul has the largest number of producing wells in Brazil, 67.

The four fields which also produce 3.6 million cubic meters of natural gas are located between 90-150 kilometers offshore and up to 2,500 meters below the seabed.

Petrobras shares rose more than 4% in Sao Paulo following the announcement.

Reporting by Sabrina Valle, editing by Louise Heavens and Steve Orlofsky

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Brazil Emerges As The World’s Leading Offshore Oil Producer | Instant News


Sharp oil prices, the COVID-19 pandemic, and increasing geopolitical uncertainty have done little to blunt Brazil’s epic oil boom. In September 2020, Brazil has jumped to the third largest supplier crude oil to China, the world’s second largest economy. The scale of Brazil’s deep sea offshore oil boom is underlined by the pre-salt Tupi oil field which for the third quarter of 2020 reached an impressive milestone by pumping out two billion barrels of accumulated oil production in the decade since commercial oil production began. The main reason for this is the rapidly growing popularity of sweet medium crude oil produced from Brazil’s pre-salt oil fields, particularly the world’s largest deep-sea Tupi oil field, and the Buzios field.

Petrobras, which is spearheading development of Brazil’s vast offshore pre-salt oilfield, reported record crude exports for September 2020, of which about 87% were shipped to China. There are signs off the coast of Brazil oil explosion will continue unhindered despite China oil imports slow down. Petrobras Chief Executive Roberto Castello Branco believes China has the capacity to absorb all crude oil produced for export by Brazil, even with production growing steadily. The increasing popularity of Brazilian sweet medium-grade Lula and Buzios crude pumped from the Tupi and Buzios fields has led them to sell at a premium to Brent in China. The soaring demand for these crude blends has caused their price gap to widen further, fueling speculation that they could become world oil. most expensive crude oil varieties. Petrobras is active looking for new an export market in Asia where demand for light sweet crude is increasing on a push for higher levels of gasoline, diesel and maritime fuels. India has become a major target market. The world’s fifth largest economy, prior to the COVID-19 pandemic, was developing at a solid clip of GDP growth to 8% in recent years, making it the fastest growing major economy globally. While the IMF predicts that India’s economy will contract by more than 10% during 2020, it is expected to return to growth in 2021 with the IMF anticipating an impressive annual GDP growth rate of 8.8% year on year. Solid economic growth in India coupled with a large, growing, and getting richer population will cause it demand for energy and fuel has increased significantly. US sanctions preventing Indian refiners from buying Venezuelan crude have forced them to look elsewhere while enforcing them IMO2020 this year has substantially increased demand sweet crude oil in Asia.

The new maritime regulations have also triggered an increase in demand for Brazilian medium sweet crude from Singapore, which is a regional shipping hub. This increased demand for Brazil’s sweet pre-salt medium crude oil will be met by an ever-increasing supply. Despite the COVID-19 pandemic and sharply weakening oil prices following the March 2020 price crash, Brazil’s pre-salt production continues to increase. Data from Brazil’s national petroleum regulator, the National Agency for Petroleum, Natural Gas and Biofuels (ANP – Portuguese initials), shows September 2020 (in Portuguese) pre-salt oil production was nearly 2.6 million barrels per day, which was 13% higher than the previous year. That sees pre-salted oil production responsible for 89% of Brazil’s total petroleum production for the period compared to 78% for the equivalent month in 2019.

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The volume of sweet medium crude pumped from Brazil’s pre-salt oil fields will continue to grow. Petrobras, which is responsible for more than 60% of Brazil’s pre-salt oil production, is investing in enhancement activities in its pre-salt assets, particularly the Buzios oil field. Brazil’s national oil company recently announced purchase of shares of Shell and Petrogal Brasil for $ 353 million, a subsidiary of Galp Energia from Portugal, in the floating production storage and offloading vessel P-71. The FPSO will be stationed at the Tupi field but Petrobras has chosen to place the ship, which has a production capacity of 150,000 barrels per day, at the Itapu oil discovery site. The Brazilian national oil company expects to bring Itapu online during 2021, much earlier than its planned 2024 start date. Therefore, Petrobras, owner of the 65% Tupi oil field, has partnered with Shell partners who have 25% shares, and Petrogal, the owner of the remaining 10%, to design a new development plan for Tupi which will later be built. sent to ANH in 2021. Tupi’s huge potential is underlined by Galp’s belief that deep sea oil fields have up to 20 billion barrels of oil. Production from the Buzios pre-salt field grew at a rapid rate reaching an average of 604,000 barrels per day for the third quarter of 2020, or more than one-third of Petrobras’ total pre-salt oil production for the period. For September 2020 alone, Buzios produced an average of 749,810 barrels of oil per day while 1% lower than August 2020 is an impressive 84% greater than the same period during 2019. Sweet medium crude, which has an API gravity of 28.4 degrees, low sulfur content of 0.31%, and low aromatic, is rapidly gaining popularity among Asian refiners. Responding to this increased demand, especially from China, Petrobras stepped up activities in the field. Brazil’s national oil company plans to install 12 FPSOs in the Buzios field by 2030 which is expected to pump more than 2 billion barrels of crude daily, making it Brazil’s largest oil field. Meanwhile peak oil demand, which is expected occur by 2030, and sharply weakening oil prices are weighing on petroleum investment, strong demand for Buzios crude and low break-even costs, which estimated to $ 35 a barrel, underlining the reasons for Petrobras’ significant investment in the oilfield.

Brazil is rapidly heading for the world’s major offshore oil boom. The combination of the enormous potential for oil, a blend of light and medium crude with very low sulfur, and the increasing demand from refineries for lighter sweet crude coupled with low break-even costs make it a very attractive jurisdiction for investment from major global energy companies. For this reason, investment will continue to flow into Brazil’s pre-salt oil basins strengthening the Latin American nation’s proven oil reserves and production despite headwinds filed by the COVID-19 pandemic, sharply weakening oil prices, and the emergence of peak oil demand.

By Matthew Smith for Oilprice.com

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Petrobras Brasil was chasing buyers in India as oil exports took off | Instant News


RIO DE JANEIRO (Reuters) – As Petrobras controlled by the Brazilian state PETR4.SA rapidly increasing oil production and exports, executives are looking for a new market: India.

In an interview as part of the Reuters Commodities Trade Summit, Chief Executive Roberto Castello Branco said crude oil sales to China – an increasingly important export market for Brazilian oil – will continue to pick up amid strong industrial growth there and an increase in some off-field countries. the largest beach in the world in Brazil.

But Petrobras’ newly reorganized marketing and logistics division is actively seeking additional markets, especially in Asia.

The company, for example, has begun chasing new buyers in India, which Petroleo Brasileiro SA hopes to formally call the company, hopes to become a relevant client within three years as it moves to diversify its buyer mix and minimize its dependence on China. .

“We hope this has a positive evolution in the near term, in roughly three years to have a consolidated position in the (Indian) market,” Castello Branco told Reuters.

The company is also increasing its fuel oil exports to Singapore. The country, which acts as a shipping hub, has increased purchases of low-sulfur Petrobras fuel to comply with new maritime laws intended to reduce greenhouse gas emissions. Production from the large deep sea Buzios field enlarged Brazil’s oil surplus and enabled Petrobras to raise its 2020 production target by 5% in recent weeks.

Producers are also bracing for stronger internal competition as they sell refineries and try to end the near-near monopoly of Brazilian fuel production. “To face stronger competition, we put the logistics, sales and marketing divisions … to act as active sellers, not passive sellers,” said the CEO. Although recently rising to become the third largest oil supplier to China, ahead of the United States, Brazil is still a relatively small seller to the Asian country compared to Russia and Saudi Arabia, says Castello Branco – but not for lack of appetite. China will absorb all the oil Brazil has to offer and often pays a premium for sweet crude from Brazil’s Tupi fields, he said. In April, Petrobras hit a historical figure of 1 million barrels per day of crude shipped to China as a sharp drop in internal fuel consumption diverted oil from domestic refineries. “At the moment, we don’t have the capacity to sell 1 million (barrels per day),” said Castello Branco. “With increased oil production, we will have the availability to do that.”

Reporting by Sabrina Valle; Edited by Kirsten Donovan and Marguerita Choy

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Reuters summit: Brazil’s Petrobras is chasing buyers in India as oil exports take off | Instant News


FILE PHOTO: The logo of the Brazilian state-owned Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / Photo File / Photo File / Photo File

RIO DE JANEIRO (Reuters) – As Brazil’s state-controlled Petrobras is rapidly increasing oil production and exports, executives are looking for a new market: India.

In an interview as part of the Reuters Commodities Trade Summit, Chief Executive Roberto Castello Branco said crude oil sales to China – an increasingly important export market for Brazilian oil – will continue to pick up amid strong industrial growth there and an increase in some off-field countries. the largest beach in the world in Brazil.

But Petrobras’ newly reorganized marketing and logistics division is actively seeking additional markets, especially in Asia.

The company, for example, has already started looking for new clients in India, which Petroleo Brasileiro SA hopes to formally call the company, hoping to become a relevant client within three years as it moves to diversify its buyer mix and minimize its dependence on China. .

“We expect this to have a positive evolution in the near future (in India), in roughly three years to have a consolidated position in the market.”

Reporting by Sabrina Valle; Edited by Kirsten Donovan

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Petrobras Brasil said a major divestment was nearing the finish line | Instant News


RIO DE JANEIRO (Reuters) – Petrobras is in the advanced stages of several major divestments, executives said on Thursday, suggesting that the company’s ambitious deleveraging program could accelerate after a lull during Brazil’s worst coronavirus outbreak.

PHOTO FILE: PHOTO FILE: Brazil’s state-owned Petrobras oil company logo is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / Photo File / Photo File

Speaking to analysts after the company’s third-quarter results, executives at Petroleo Brasileiro SA PETR4.SA, as the state-owned oil company is officially called, said it hopes to complete negotiations to sell the RLAM refinery by the end of the year and recently received a binding offer for the REMAN refinery, in the Amazon city of Manaus.

The company expects to receive binding offers for the REPAR refinery in southern Brazil in December, they added.

Petrobras has sought to sell dozens of non-core assets in recent years in a bid to reduce debt and sharpen its focus on offshore oil production and exploration. Among the divestments are sales of nine refineries which are expected to raise more than $ 10 billion cumulatively for the company.

But the divestment process has struggled in recent months amid falling crude oil prices and a more general slowdown in the global economy.

The company expects Brazil’s antitrust authorities to approve the sale of its Liquigas gas distribution unit in November, said Chief Financial Officer Andrea Almeida.

The company is also continuing to examine initial public offerings for its middle offshore asset collection, he added.

Executives are not very optimistic about some of the other divestments.

Chief Executive Roberto Castello Branco said plans to sell his stake in the TBG gas pipeline unit, which links Brazil and Bolivia, were hampered by regulatory issues.

The company will not sell its stake in the Braskem SA petrochemical company BRKM5.SA until the company makes significant improvements in terms of governance and environmental obligations, he added.

Brazil-listed preferred stock in Petrobras rose 2.3% in afternoon trade, after the company beat margin forecasts late Wednesday, even as profit missed expectations on a one-time fee.

Brazil’s benchmark Bovespa equity index .BVSP up 1.2%.

In terms of production, executives marked a moderate drop in fourth quarter output and an increase in lifting costs due to scheduled maintenance. However, they said, a number of new wells had been operating in some of the company’s most promising offshore fields in the fourth quarter.

The company has noticed a short-term decline in demand for its products in Europe due to the rise of COVID-19 there, said André Chiarini, head of logistics and trading of the company. However, demand for Petrobras fuel in China remains strong, he added.

Reporting by Gram Slattery and Luciano Costa; Edited by Kirsten Donovan and David Evans

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