Chinese Oil Majors to Pay USD2.94 billion for Brazilian Field Exploration

 

Chinese oil majors CNOOC and CNODC will pay USD2.94 billion for exploration in a Brazilian oil field, Brazil´s state oil company announced.

Brazilian state-run Petrobras said that its Chinese partners in the Buzios pre-salt oil field will have to pay it USD2.94 billion for its prior investment in exploration.

Petrobras said in a securities filing that Brazilian oil regulator ANP still has to approve the estimates of payment by China National Offshore Oil Corp (CNOOC) and China National Oil and Gas Exploration and Development Corp (CNODC), which have a 10 per cent stake in the surplus output of the productive Santos basin field.

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The Brazilian “pre-salt,” which has emerged as one of the world’s most promising conventional oil plays.

The area was defined in a 2010 deal between the government and Petrobras, when the company raised some USD 70 billion in the world’s largest-ever share offering at the time.

A record auction of Buzios oil prospecting rights in November 2019 was won by a consortium led by Petrobras (90 per cent) along with CNOOC and CNODC (10 per cent).

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The Chinese oil majors agreed to pay the Brazilian company for its investment in exploration that found the surplus oil

Once the payment gets regulatory approval and is paid to Petrobras, the Brazilian company will have a 92.66 per cent stake in Buzios and its Chinese partners 3.66 per cent each, the filing said.

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