- Petrobras (NYSE:PBR) and Total (NYSE:TOT) are awarded crude supply contracts from the Brazilian government, its first successful auction of its share of production from the pre-salt offshore play.
- The auction, held by Pre-sal Petroleo, the state company managing contracts for pre-salt oil development, was the government’s second attempt to sell its share of oil from three fields in the Santos offshore basin after the first attempt in May yielded no bids.
- PBR wins a three-year contract covering 10.6M barrels of crude from the Mero field, the first commercial discovery in the Libra block, and a separate 36-month deal for 600K barrels of crude from the Sapinhoa field; PBR owns 40% in a consortium developing Mero that includes Royal Dutch Shell (LON:RDSa) and TOT with 20% each, and China's Cnooc and CNPC each holding 10%, while PBR has a 40% stake in Sapinhoa while Repsol (MC:REP) Sinopec owns 25% and Shell holds 30%.
- TOT wins a 12-month contract for oil from the Lula field in the Santos basin, which should total ~1.1M barrels; the field is operated by PBR, which owns a 65% stake, while Shell holds 25%.
- Now read: Patterson-UTI Energy Sees Weakness In Pressure Pumping, But Drilling Is A Bright Spot
Original article