Petrobras is expected to close a deal with the Chinese regarding Libra.
In the consortium, the Brazilian state-owned company, headed by Graça Foster, would operate in conjunction with the companies CNOOC and CNPC, holding a 40% stake; the federal government would receive a bonus of R$ 15 billion and views this alliance favorably, since the enormous investment costs would be shared between Petrobras and the Asian oil companies.
By Sabrina Lorenzi
RIO DE JANEIRO (Reuters) - Petrobras is preparing to enter the Libra auction with at least a 40 percent stake in the block, in a consortium formed with the Chinese state-owned companies CNOOC and CNPC, a source with direct knowledge of the matter said on Friday.
Six other companies that had registered and paid the guarantees to participate in the first round of pre-salt bidding were still working to try to compete for the Libra area in these final days leading up to the auction, the source told Reuters, without revealing the companies' names.
Another source consulted by Reuters said that oil companies continue to communicate in search of forming a consortium for the bidding process, a move that should continue until Monday the 21st, when the Libra auction takes place.
Repsol Sinopec (a partnership between the Spanish company Repsol and the Chinese company Sinopec) would not remain in the Petrobras consortium due to incompatibilities between them, the two sources said. There are still doubts as to whether Repsol Sinopec will be able to form another consortium that would compete with the one formed by Petrobras.
The Anglo-Dutch company Shell would also not be part of the same consortium as Petrobras, the first source said.
The presence of companies interested in exploring the 8 billion to 12 billion barrels of recoverable reserves in Libra is considered certain by oil and gas industry experts, even though there may be little competition.
Companies will compete for up to 70 percent of the Libra field, since Petrobras will be the operator of the area with a minimum 30 percent stake in any consortium that wins the bid, even in any groups initially formed without the Brazilian state-owned company.
BONUS
According to two other executives in the sector, who also spoke on condition of anonymity, what's important for the government is receiving the 15 billion reais bonus and having the presence of Asian companies to carry out the heavy investments necessary for the development of the giant Libra field.
Other companies that registered for the tender include Japan's Mitsui, India's ONGC, Malaysia's Petronas, Colombia's Ecopetrol, France's Total, and Petrogal (a joint venture between Portugal's Galp and Sinopec).
For Petrobras, less competition in the auction would be positive, because more competition would imply more aggressive bids and lower financial returns.
In a bidding model where the bonus is fixed, whoever offers the largest share of oil to the Union will win the bid. The minimum share that will go to the federal government is 41,65 percent of the Libra oil, after deducting production costs.
Libra is expected to reach a peak production of 1,4 million barrels of oil per day (bpd) between 10 and 15 years after the contract is signed, the National Agency of Petroleum, Natural Gas and Biofuels (ANP) estimated this week.
To reach this peak, 12 to 18 platforms and between 60 and 80 support vessels will be needed.