Brazilian President and Min. of Energy willing to discuss the pre salt legislature

This is the first time that Dilma Rousseff and the federal govt. are willing to discuss changes in the Pre Salt legislature , which includes Petrobras role as sole operator of the pre salt fields and the local content rule. Senate president, Renan Calheiros, had previously confirmed that the bill written by senator Jose Serra (PSDB) will be scheduled for discussion at the senate level. More to come in coming weeks.

Shell CEO expects Brazil output to quadruple by 2020

Europe’s largest oil company, expects to make robust investments in Brazil’s offshore, hoping to quadruple oil and gas output there by the end of the decade, its chief executive officer said on Monday.

CEO Ben Van Beurden spoke in Brazil shortly after Shell’s $52 billion takeover of rival BG Group Plc BG.L, approved in late January, took effect.

He said Brazil will be a key area for the Anglo-Dutch company as it focuses its expanded operations in liquefied natural gas (LNG) and deepwater oil production.

“We believe in the strong fundamentals of Brazil and the fundamentals of its geology,” Van Beurden told reporters in Rio de Janeiro. “We will be looking at a substantial part of our production from Brazil.”

By adding BG’s large Brazilian offshore assets, Shell’s local output rose sixfold to about 240,000 barrels of oil and natural gas equivalent a day (boepd), or 13 percent of its total of 1.8 million boepd.

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Shell Makes Brazil One of Top Three Countries After BG Merger

Royal Dutch Shell Plc. has made Brazil one of its top three countries after completing a merger with BG Group Plc, and sees the South American nation’s deep-water fields remaining competitive for years to come.

Brazil “will remain a key destination country for us for investment dollars for at least another decade,” Chief Executive Officer Ben Van Beurden told reporters in Rio de Janeiro on Monday as Shell took control of BG’s Brazil assets. “Today we will see the birth of what will be undoubtedly the best company in our industry.”

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Shell Surpasses Chevron to Become No. 2 Oil Company: Chart

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Shell Surpasses Chevron to Become No. 2 Oil Company: Chart
Rakteem Katakey

February 15, 2016 \ Bloomberg

Royal Dutch Shell Plc has surpassed Chevron Corp. as the world’s second-biggest non-state oil company after completing the acquisition of BG Group Plc. The purchase raises Shell’s market capitalization to $177 billion and adds new assets in Australia and Brazil that give it more flexibility to ride out a downturn, Barclays Plc said in a report Monday. Exxon Mobil Corp. remains the world’s most valuable oil company with a market value of $337 billion, almost twice as big as Shell.

Shell says investment in Brazil subsalt to remain robust

Feb 15, 2016 

Royal Dutch Shell (RDSa.L), Europe’s largest oil company, believes that investment in Brazil’s subsalt offshore areas will remain robust, Chief Executive Ben van Beurden said in Rio de Janeiro on Monday.

Van Beurden said that subsalt areas should be able to break even at oil prices expected this year. The global oil industry must invest $1.5 trillion a year to maintain output, he added.

(Reporting by Jeb Blount and Marta Nogueira; Writing by Caroline Stauffer; Editing by David Goodman)

Sembcorp Marine Posts First Loss Since 2003 on Brazil Impact

Sembcorp Marine Ltd., the world’s second-largest builder of oil rigs, posted its first quarterly loss in at least 12 years after it took a one-time charge and as plunging oil prices pushed customers to delay or cancel orders for offshore drilling projects.

The net loss in the fourth quarter totaled S$537 million ($384 million), the Singapore-based company said in a statement Monday. The company took impairment charges and provisions of S$609 million for projects of its client Sete Brasil Participacoes SA and others. It’s the first quarterly loss since the company started reporting data in 2003, according to Sembcorp Marine’s website.

Builders of floating facilities for drilling and production have reported losses in recent quarters as oil plunged more than 40 percent in the past year, leading companies to cut spending and cancel orders. Sembcorp Marine’s bigger rival Keppel Corp. was also hit as Sete Brasil, a major customer for the two Singaporean companies, is running out of funds and hasn’t paid both rigbuilders for more than a year. Keppel said in January it took a charge of S$230 million because of Sete Brasil.

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Iran, Brazil in talks on investment in Brazil refineries -source

Iran and Brazil are in talks about a possible Iranian investment in troubled refinery projects controlled by Brazilian state-led oil company Petroleo Brasileiro SA, a Brazilian government source told Reuters on Thursday.

Iran, which is boosting oil output after the end of sanctions over its nuclear program, is interested in exporting oil to Brazil, processing that crude at refineries in Brazil’s northeastern region and then selling it in the Brazilian market, the source said, adding that talks are at an early stage.

Talks though are far from any result, the source added.

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Petrobras Drops to 16-Year Low as Brazil Stocks Join Global Rout

State-controlled oil producer Petroleo Brasileiro SA sank to the lowest level since 1999 as the Ibovespa fell for a third consecutive day, joining a global market selloff.

Petrobras, as Petroleo Brasileiro is known, dropped as oil declined to the lowest in 13 years. Miner Vale SA followed iron ore lower, leading losses among raw-materials companies. Itau Unibanco Holding SA contributed the most to the benchmark equity index’s decline amid concern that forecasts for Brazil’s deepest recession in more than a century will sap corporate profits.

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Total’s Quarterly Profit Beats Estimates on Oil Output, Refining

Total SA posted fourth-quarter earnings that beat analyst estimates as rising oil and gas production, higher gasoline and lubricant sales, and profit from refining helped it weather a slump in crude prices. The company deepened cost and investment cuts.

Adjusted net income fell 26 percent from a year earlier to $2.08 billion, the company based outside Paris said Thursday. That exceeded the average $1.77 billion estimate of nine analysts surveyed by Bloomberg. Total reported a net loss of $1.63 billion after writing down the value of assets in Canada and Nigeria, among other projects.

“Upstream production increased by a record 9.4 percent, driven by the startup of nine projects” in 2015, Chief Executive Officer Patrick Pouyanne said in a statement. “Refining & Chemicals was able to fully benefit from good margins thanks to the high availability of its installations.”

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