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Tuesday, Oct 1
Brazil limits Chinese oil firms to joint bids for Libra field
- Chinese state-controlled oil companies will be limited to joint bids to develop Brazil's Libra prospect, amid concerns the firms could share data and reduce competition at the Oct. 21 auction, Brazilian officials say.
- China's Cnooc (CEO) and China National Petroleum (PTR) are controlled by the Chinese government and would have to team up for a potential bid if both companies want to participate; it's unclear whether Sinopec (SNP) could bid on its own, since it registered for the auction via its joint venture with Spain's Repsol (REPYY.PK, REPYF.PK).
- The move threatens to further water down bidding in Brazil's first-ever auction under new production-sharing agreements after oil majors such as Exxon, BP and Chevron declined to participate.