Chinese investments in oil and gas in Brazil reach US $ 40 billion

10/17/18

The possible formation of a joint venture between Petrobras and CNPC to develop the revitalization projects of Marlim and Comperj follows the strong movement of China’s entry into the Brazilian oil sector.

According to the Ministry of Planning, oil and gas projects (announced or confirmed) attracted about $ 40 billion in Chinese investments between 2003 and this year, equivalent to 30% of the total contributed by the Asian country in Brazil in the period.

Only the electric power sector attracted more Chinese capital in the period, accounting for 46% of the total investments, especially projects for hydroelectric generation and transmission of energy.

BE Petroleo’s survey shows that only in the upstream – including the blocks acquired in the production-sharing rounds promoted by ANP between 2017 and 2018 – investments of Chinese origin total approximately R $ 4 billion.

The highest amounts refer to the signing bonus paid by CNOOC and CNPC for the Libra area in 2013: R $ 1.5 billion in each case, considering its 10% stake in the asset.

In the third round of the pre-salt phase, in 2017, CNODC purchased 20% of the Peroba area, with a total bonus of R $ 2 billion, and CNOOC, 20% Alto de Cabo Frio Oeste, implying payment of R $ 70 million in bonuses. This year, in the fifth auction, the last company acquired 30% of Pau Brasil (R $ 400 million in bonuses).

The Chinese also appeared in recent concession auctions. In the 13th round, Tek Oil and Gas took the REC-T-153 block in the Recôncavo Basin, committing itself to a total investment of around R $ 10 million.

In the next auction, the same company bought two more blocks in Bahia, with a contribution of R $ 3.27 million, while CNOOC received ES-M-592, in the Espírito Santo Basin (R $ 41 million in committed investments) .

It is worth remembering that the Chinese group Sinochem has a 10% stake in two blocks in the Espírito Santo Basin (ES-M-529 and ES-M-531) and 40% in the Peregrino field in the Campos Basin. be sold to the Australian Karoon.

Other highlights

China’s interest in the downstream: In March of this year, Shandong Kerui signed a contract with Petrobras to execute the UPGN’s Comperj works. Months later, Petrochina bought 30% of the Pernambuco fuel company TT Work.

In the meantime, it was speculated in the press that China’s Qingdao Xinyuan Chemical had begun negotiations with Petrobras to acquire a stake in the Landulpho Alves Refinery (RLAM) in Bahia, but the information has not been confirmed so far.

Aluminum and Platforms

Segments of heavy industries and shipbuilding are also on the Chinese radar. Last May, the Municipality of Cabo Frio (RJ) and a Chinese delegation from the city of Huzhou signed a protocol of intentions for investments in the field of manufacturing aluminum tubes for the oil sector.

Also in the first semester, Petrobras contracted the CIMC Raffles Shipyard to complete the FPSO P-71 hull, which was in charge of the Rio Grande Shipyard, in Rio Grande do Sul.

As published by BE Petróleo, most of Petrobras’ own platforms contracted between 2010 and 2013 were carried out by Asian shipyards, mainly Chinese ones.

 

Source: Brazil Energy

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