Exxon’s Big Bet on Brazil Oil Could Signal Major Pre-salt Role

30 Sep 2017   Brazil

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. That showed how oil companies that can afford significant overheads are willing to shell out for and develop high quality reserves in far-flung locations, despite oil […]

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