Petrogal to Invest Up to $1 bln per Year in Brazil -CEO
Petrogal, the Brazilian unit of Portugal's Galp, plans to spend $800 million to $1 billion annually in the coming years in Brazil to develop its current oil and gas assets and boost its stake offshore, its chief executive officer said on Thursday.CEO Miguel Pereira said the company, Brazil's third largest oil and gas producer, wants to expand its presence in Brazil's offshore pre-salt areas, where billions of barrels of oil are trapped under a thick layer of salt, especially in the Campos and Santos basins."We want to be here, we want to grow here.
Big Oil Readies Brazil Offshore Bets
Exxon Mobil Corp , Royal Dutch Shell Plc and other companies will gather on Friday in possibly their last crack at Brazil's coveted offshore oil for another four years, as a wide-open election spurs fears about barriers to foreign investment.The auction in Rio de Janeiro for four blocks in the Santos and Campos basins comes just a week before the most unpredictable presidential election in a generation, which features candidates that may seek to slow the pace of oil auctions, revise market-friendly legislation or even claw back oil areas already handed out."They can try to revise the whole process of opening up (the oil industry) to international oil companies…
Petrobras CEO Parente Resigns
Petroleo Brasileiro SA's chief executive quit on Friday in a surprise move that wiped $12 billion off the state-controlled oil producer's market valuation, after Brazil's government responded to a national trucking strike by intervening in the company's fuel pricing policy.Pedro Parente, who in two years in the job had succeeded in slashing the scandal-plagued company's debt and restoring it to profitability, said in a resignation letter to President Michel Temer it was clear after the last week's turmoil that new talks would be needed on pricing policy."Given this situation…
Petrobras Board Member Resigns Amid Pricing Turmoil
José Alberto de Paula Torres Lima, a board member at Brazilian state-run oil company Petroleo Brasileiro SA, resigned on Tuesday due to "personal reasons," the company said in a filing on Wednesday.Shares in Petrobras, as the company is known, have fallen nearly 30 percent since May 16 amid fears over government interference in the firm. Brazil's President Michel Temer has considered scrapping a market-based pricing mechanism used by Petrobras and reverting to a previous policy of selling fuel below costs, Reuters reported on Tuesday, a move that would further spook investors.(Reporting by Gram Slattery)
Eletrobras Shares Sink After Privatization Decision
Shares of Brazil's state-run power company Eletrobras fell over 9 percent in early trading after a Congressional decision late on Tuesday to not vote on one of the decrees regarding the privatization of the company and some of its subsidiaries.The head of Brazil's lower house, Rodrigo Maia, said it would not put for a vote a presidential decree outlining rules for the sale of public power companies, asking President Michel Temer to send a draft bill instead.Reporting by Marcelo Teixeira
Shell, Exxon Win Brazil pre-salt Blocks
Oil majors Royal Dutch Shell and Exxon Mobil won blocks in Brazil's coveted pre-salt oil region in an auction on Friday. Shell was part of consortia that won two of the four blocks on offer in the first part of an eight block auction. Exxon, in a consortium with Norway's Statoil and Portugal's Petrogal, won another. There were no bids for the fourth block. Another four blocks will be auctioned later on Friday. The eight blocks on offer contain a total of more than 12 billion barrels of estimated oil reserves. President Michel Temer's government has enacted reforms to make the energy sector more attractive to foreign investment…
Big Oil Heads to Rio for Deepwater Auction
Brazil will auction eight blocks in its coveted deepwater oil region on Friday, a prospect that has lured top executives from the world's biggest oil companies to Rio de Janeiro for the bidding round. The oil firms and Brazilian officials expect to see aggressive bidding for the more than 12 billion barrels of estimated oil reserves on offer. "It's going to be competitive," Bernard Looney, chief executive for upstream at oil major BP, told Reuters on the sidelines of an industry conference in Rio this week. The blocks are in a region with prolific oil production from fields known as pre-salt…
Exxon's Big Bet on Brazil Oil Could Signal Major Pre-salt Role
Exxon Mobil Corp's big bet on Brazil's offshore Campos basin shows its willingness to pay up to replenish its reserves and may pave the way for hefty bids in October auctions in the country's rich pre-salt areas, analysts said. Marking a return to Brazilian exploration after a five-year absence, Exxon took eight blocks in the coveted basin, one of Brazil's most productive, at an auction on Wednesday. Six were taken in partnership with state-run Petroleo Brasileiro (Petrobras). The auction's record take included an Exxon bid of 2.24 billion reais ($704 million) for one block, Brazil's highest-ever such bid.
Brazil Infrastructure Minister Keeps Job, Immunity
A Brazil Supreme Court justice rejected an injunction that sought to remove President Michel Temer's minister in charge of infrastructure investment, Wellington Moreira Franco, who has been named in a corruption investigation. Justice Celso de Mello's ruling on Tuesday also allows Moreira Franco to keep his immunity from prosecution by lower courts. The injunction filed by a leftist opposition party sought to annul his appointment as cabinet minister, arguing that Temer was trying to shield him from prosecution. Mello ruled that was not the case.
Brazil to Ease Oil & Gas 'Local Content' Requirements
Brazil will stop favoring companies that offer to purchase a larger amount of local goods and services when selecting winners in oil and gas rights auctions, newspaper Valor Economico reported on Monday. In previous auctions, companies that offered more in the way of local content requirements were favored over peers. The newspaper said it was "practically certain" that this will not be the case in the 14th round of oil rights concession auctions, likely to be held next year. Brazil's new centre-right government also intends to loosen minimum local content rules by not specifying whether individual components, such as bolts, have to be produced in the country.
Oil Workers Reject Petrobras Offer, Strike Possible
Brazil's largest oil workers' federation said Thursday its members voted overwhelmingly to reject a contract offer from Petroleo Brasileiro SA, or Petrobras, and were preparing for a possible strike. Leaders of the FUP union plan to continue talks with Petrobras starting at 2 p.m. (1700 GMT) in Rio de Janeiro and have not yet called on workers to walk off the job. In recent years, Petrobras has given wage increases well in excess of inflation, and this year's annual negotiations are shaping up as a test of mettle for new Chief Executive Officer Pedro Parente, who has pledged to cut costs.
Brazil Energy Market Share Could Soar with Right Policies
Brazil could double its share of world oil and gas exploration and development investment in the next few years if it makes the right policy decisions, Jorge Camargo, head of the Brazilian oil and gas industry association IBP, told reporters on Monday. Camargo said he feels the government of Brazilian President Michel Temer understands the need to improve its regulatory model for the industry. If it succeeds, Brazil could boost its share of world oil and gas exploration and production investments to 7 percent to 10 percent from its current 5.8 percent, he said.
Petrobras to Name Silva to New Top Strategy Post
Brazil's state-led oil company Petroleo Brasileiro SA plans to appoint Nelson Silva, the former head of BG Plc in Brazil, as chief of strategy and management, a newly created position on its senior management committee, company sources told Reuters. Silva came to Petrobras ealier this month as an advisor to new Chief Exectutive Pedro Parente, who was apointed by Brazil's interim-Presdient Michel Temer to cut the company's massive debt and find ways to revive investment. (Reporting by Rodrigo Viga Gaier; Writing by Jeb Blount; Editing by Richard Chang)
Petrobras CEO to Cut Salaries
Brazil's Petroleo Brasileiro SA plans to propose a deal with unions to reduce salaries and working hours at the state-run oil company to help cut a massive debt, newspaper o Estado de S. Paulo said on Tuesday. Petrobras Chief Executive Officer Pedro Parente will propose cutting salaries by as much as 25 percent starting in September, Estado said, citing a company source. Workers rejected a similar proposal by former CEO Aldemir Bendine last year. Brazil's main oil workers have also opposed the interim government of President Michel Temer, holding a 24-hour strike last week as part of nationwide protests.
Brazil Oil Group Expects Bill Ending Subsalt Exclusivity Soon
Brazil's lower house of Congress could pass a bill in July ending the exclusive right of state-run oil company Petrobras to operate new projects in the deep-sea offshore area known as the subsalt, the head of Brazil's oil industry association IBP said on Thursday. Jorge Camargo, speaking at a swearing in ceremony for new Petrobras Chief Executive Pedro Parente, said the government of interim President Michel Temer is showing urgency in helping Brazil's oil industry recover. (Reporting by Jeb Blount, writing by Stephen Eisenhammer)
Brazil's Temer Looking to Replace Vale CEO
Brazil's interim President Michel Temer plans to replace the head of the nation's largest miner, Vale SA, because he is too closely allied with suspended President Dilma Rousseff, newspaper Valor reported on Thursday. Valor said a decision has yet to be taken, and cited one source as saying that controlling shareholders had not yet discussed the issue. A government move to replace current Chief Executive Murilo Ferreira would be controversial as Vale, the world's largest producer of iron ore, is a private company that is supposedly free from state interference.
Eletrobras' CEO Plans to Resign over Asset Sales
The chief executive of Brazil's state energy holding company Eletrobras SA, Jose da Costa Neto, has prepared a resignation letter over plans by the new government to sell off assets of the cash-strapped company, a source with knowledge of the situation said on Friday. Costa Neto, who was appointed by suspended President Dilma Rousseff, is opposed to interim President Michel Temer's plan to privatize assets including Eletrosul and Furnas, the source said. (Reporting by Rodrigo Viga Gaier; Writing by Reese Ewing; Editing by Chizu Nomiyama)
Petrobras to name Parente as CEO
The board of Brazil's state-run oil producer Petroleo Brasileiro SA will meet on Monday to formalize the nomination of Pedro Parente as chief executive, replacing Aldemir Bendine, according to a securities filing on Friday. Parente, a 63-year-old engineer and one-time chief of staff to former President Fernando Henrique Cardoso, was appointed by interim President Michel Temer as Petrobras faces a financial crisis brought on by low world oil prices, crippling debt and a massive corruption scandal. Reporting by Silvio Cascione
Petrobras Tests Investor Sentiment with $6.75 Bln Bond Sale
State-controlled Petróleo Brasileiro SA raised $6.75 billion on Tuesday through a sale of five- and 10-year dollar-denominated bonds, in a closely watched return to global capital markets after the suspension of Brazilian President Dilma Rousseff. The bond sale is the first by any Brazilian company since last June and the first to test investor sentiment toward Brazil since Rousseff was removed from office last week to face an impeachment trial. Petrobras, as the company is known, also announced a plan to repurchase up to $3 billion of bonds maturing in 2018 and debt bearing interest of 8.375 percent.
Temer to Invite Pedro Parente for Petrobras CEO Post
Brazil's interim President Michel Temer will formally invite Pedro Parente, currently the chairman of financial bourse BM&FBovespa SA, to become chief executive of state-controlled oil company Petróleo Brasileiro SA , chief of staff Eliseu Padilha said on Thursday. The announcement confirms an early Reuters report saying Parente, a former chief of staff under Fernando Henrique Cardoso government, would be picked for the job. (Reporting by Lisandra Paraguassu; Writing by Marcelo Teixeira)
