Juniors eyeing Brazil onshore, shallow water blocks

Wednesday, October 19, 2016

The growing focus of Brazil's state-run oil firm Petrobras on pre-salt oil and gas production has created a new opening for smaller and mid-size companies, a consultant has told BNamericas.

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Petrobras has reduced investments by around a third in the past two years as it struggles to overcome a corruption scandal and lower oil prices.

But while the company has maintained its commitment to ultra-deepwater projects off Brazil's southeast coast, onshore and shallow water blocks are no longer part of its long-term strategy.

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"New market opportunities are opening up for companies with different operating profiles that can achieve growth in mature fields, for which demand has traditionally been strong," said José de Sá, a partner at consultancy firm Bain & Company.

In addition to spending cuts, Petrobras is selling onshore and offshore blocks as part of a US$35bn four-year divestment program.

The full interview with Sá can be seen here.

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