Oil main Royal Dutch Shell Plc RDSA.L received half the blocks awarded in Brazil’s deepwater oil public sale on Friday, whereas rival BP (BP.L) took two blocks and Exxon Mobil Corp (XOM.N) one in a historic opening of the pre-salt play to overseas operators.

Brazil awarded six of the eight blocks on provide within the public sale for the rights to pump oil from the nation’s coveted pre-salt area, the place billions of barrels of oil are trapped under 1000’s of toes of salt within the nation’s Atlantic waters.

President Michel Temer stated growth of the blocks would result in 100 billion reais ($30.84 billion) in funding from the profitable corporations and 130 billion reais in royalties and different revenues for the cash-strapped state.

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The wins bolster Shell’s place as the biggest overseas operator in Brazil’s offshore oil sector, second solely to state-run oil large Petroleo Brasileiro (Petrobras) (PETR4.SA), including greater than 1,700 sq. kilometers (656 sq. miles) to its deep-water Brazil portfolio.

The Anglo-Dutch oil main received one space in a consortium with France’s Total SA (TOTF.PA), one other with Petrobras and Repsol-Sinopec, and a 3rd with Qatar Petroleum International (QPI) and China’s CNOOC.

Shell has stated it’s assured it could pump oil from the pre-salt fields at under $40 a barrel.

“These profitable bids have been submitted after our thorough analysis and add strategic acreage to our … international deep-water development choices,” Shell Upstream Director Andy Brown stated.

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Rival BP Plc (BP.L), which is energetic in Brazil however not but producing oil, took two blocks on Friday.

Source: www.reuters.com

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