October 22, 2013

BRAZIL: China's CNOOC and CNPC, Royal Dutch Shell and France's Total Join Brazil State Operator Petrobras To Win Oil Auction

Yahoo news
written by AFP staff
Monday October 21, 2013

China's CNOOC (HKSE: 0883.HK - news) and CNPC, Anglo-Dutch giant Royal Dutch Shell (Xetra: R6C1.DE - news) and France's Total (NYSE: TOT - news) joined Brazilian state operator Petrobras in a joint bid to win Monday's auction to develop the huge Libra oilfield.

The four energy giants won 35-year concessions, with Petrobras taking a 40 percent stake. Shell (LSE: RDSB.L - news) and Total both secured a 20 percent stake, with CNOOC and CNPC taking 10 percent each.

The foreign firms and Petrobras formed the only consortium to offer Brazil the minimum of 41.65 percent of oil to be extracted from the site, wich holds an estimated eight to 12 billion barrels of oil.

The auction attracted 10 participants, but none from the United States. American firms were wary that Petrobras' central role in the field would lead to too much state intervention.

The concessions are for developing huge so-called "pre-salt" oil deposits found six years ago in deep water off Brazil's Atlantic coast.

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