Petrobras Denies Talks with Exxon Mobil

Petrobras denied this morning being in ongoing talks to partner with Exxon Mobil after Bloomberg reported the two firms were talking. The Wall Street Journal had already reported last month that Exxon Mobil was exploring ways to acquire a stake in Brazil’s offshore oil resources. Possible alternatives included Exxon Mobil investing in projects along with Petrobras, as well as potentially buying stakes in offshore tracts the Brazilian government plans to lease out in bidding rounds scheduled for later in 2017.

Exxon Mobil is the only big oil company without a major foothold in Brazil. The specific terms of any agreement have yet to be completed. Representatives for both companies declined to comment. Exxon would join French giant Total SA and Norwegian state-controlled Statoil ASA, both of which have formed partnerships with Petrobras and expanded in Brazil in the past year. Royal Dutch Shell PLC has said it plans to invest $10 billion in the country over the next five years as part of a push to double its global deep-water production.

On April 5, 2017, Petrobras CEO Pedro Parente said that Exxon Mobil expressed “strong interest” in the exploration of deep-water oil fields off the Brazilian coast.

Source: Dow News wire / The Wall Street Journal, May 10, 2017

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Emerging Markets Insights

a blog by Frontier Strategy Group

longandvariable

A blog on macroeconomics and public policy by Tony Yates.

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