Brazil's quest to remake itself into a global oil superpower is gaining momentum.
BG is to invest $30 billion in Brazil in the next decade, an increase from the $5 billion it has invested since 1994. BG has stakes in some of Brazil’s largest oil discoveries, including the 6.5 billion barrel Lula field, formerly known as Tupi. BG plans to produce 550,000 barrels a day in by 2020, or a third of the company’s total production by the end of the decade. Brazil is preparing to auction exploration areas in the first half of this year as the country plans to double oil production to 5 million barrels a day by 2020. Brazil also plans to auction exploration areas in the so-called pre-salt region in deep waters of the Atlantic where the Lula field is located.
Portugal's Galp Energia will also invest $4.87 billion through 2015 as it ramps up spending to pay for the company's share of developing massive oil fields including the Lula and Cernambi fields in Brazil's pre-salt region. Galp Energia is considering the sale of a 30% stake in its Brazilian assets to finance the company's investment plans. To know more read here: http://mergersandacquisitionreviewcom.blogspot.com/2011/03/galp-to-sell-42bn-stake-opportunity-for.html
A consortium of Petrobras, BG and Petrogal discovered the Tupi field in 2007, which contains substantial reserves that occur in a pre-salt zone 18,000 feet below the ocean surface under a thick layer of salt. Following Tupi, numerous additional pre-salt finds were announced in the Santos Basin, such as Iracema, Carioca, Iara, Libra, Franco and Guara. Additional pre-salt discoveries were also announced in the Campos and Espirito Santo Basins.
These significant discoveries have ignited interests among certain O&G companies, which made Brazil to see many foreigners like Maersk, Sinopec and BP stepping deep into the discoveries in 2010. Also, with the market rumors of Sonangol and certain Chinese companies interested in taking a stake in Galp Energia, this year will again see many more foreigners exploiting the Brazlian reserves.
See the Global E&P Transactions 2010 review: http://www.derrickpetroleum.com/reports1.html
Pre-salt deals of 2010...
In 2009, Brazil’s liquids production surpassed its liquids consumption. In the January 2011Short-Term Energy Outlook, EIA projects that Brazil will continue to be a net exporter through the end of 2012. As pre-salt discoveries boost Brazilian production in the medium and long term, crude oil exports should steadily increase.