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Brazil Holds Its Most Successful Oil Auction

Brazil Holds Its Most Successful Oil Auction

09/28/2017

 By Paul Kiernan 

RIO DE JANEIRO -- Brazil held its most successful oil auction ever Wednesday, as a new partnership between state-run PetrĂ³leo Brasileiro SA and Exxon Mobil Corp. shelled out more than $1.1 billion in signing bonuses amid an improving regulatory environment.

Petrobras and Exxon teamed up in six exploration blocks in the Campos Basin, off Brazil's southeastern coast, that are believed to hold oil in an ultra-deep layer known as the "pre-salt." Though companies agreed to split the financial burden 50-50, Petrobras will operate all six blocks.

The auction marked a return by Exxon to Brazil after the company abandoned efforts to drill in the neighboring Santos Basin in 2012. Exxon Mobil's chief executive in Brazil, Carla Lacerda, declined to comment on the company's partnership with Petrobras.

Write to Paul Kiernan at paul.kiernan@wsj.com

 

(END) Dow Jones Newswires

September 27, 2017 14:25 ET (18:25 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.

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