Juniors eyeing Brazil onshore, shallow water blocks

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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.

ALSO READ: ANALYSIS: Can a new investment plan revive Petrobras?

"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.

ALSO READ: Brazil announces new oil auctions

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