BRAZIL: Consortium led by Brazilian state-run oil company wins controversial auction of oil field despite protests

Record ID: 344354

  • Title: BRAZIL: Consortium led by Brazilian state-run oil company wins controversial auction of oil field despite protests
  • Date: 21st October 2013
  • Summary: RIO DE JANEIRO, BRAZIL (OCTOBER 21, 2013) (REUTERS) BRAZILIAN FLAG ON WINDY BEACH VARIOUS OF MEN ON BEACH PLAYING SOCCER ADJACENT PERIMETER OF BRAZIL'S NATIONAL GUARD IN RIOT GEAR PROTESTER THROWS AN OBJECT ARMED MILITARY PERSONNEL ADVANCE FIRING TEAR GAS AND CARRYING SHIELDS VARIOUS OF PROTESTERS HIDING BEHIND MAKESHIFT SHIELDS, WAVING FLAGS, AND HURLING OBJECTS TOWARDS POLICE ARMED MILITARY PERSONNEL MAN YELLING AT POLICE, LIFTING UP HIS SHIRT VARIOUS OF POLICE ADVANCING, THROWING AND SHOOTING NON-LETHAL RIOT CONTROL MUNITIONS MAN HOLDS BRAZILIAN FLAG AS IT FLAPS IN THE WIND CLOSE-UP OF OFFSHORE OIL PRESENTATION BEING PROJECTED ON SCREEN IN AUCTION VARIOUS OF AUCTION CLOSE-UP OF PROJECTED SLIDE SHOWING BREAKDOWN OF OIL COMPANIES BY PERCENTAGE PARTICIPATION (SOUNDBITE) (Portuguese) UNIDENTIFIED SPEAKER AT AUCTION, SAYING: "I present the winner of the first production season organized by consortium: Petrobras, Shell Brasil, CN Total, CNPC, CNOOC, with a view on the profit oil offered to the federal government of 41.75 percent." VARIOUS OF AUCTION CONCLUDING, CONGRATULATIONS BEING EXCHANGED
  • Embargoed: 5th November 2013 12:00
  • Keywords:
  • Location: Brazil
  • Country: Brazil
  • Topics: Business,Domestic Politics,Energy
  • Reuters ID: LVA31MHE9LWRP0Z755RZL49H19IF
  • Story Text: Brazil on Monday (October 21) sold production rights to develop the giant offshore Libra oil area to a consortium led by Brazilian state-run oil company Petroleo Brasileiro SA.
    The sale has been strongly opposed by protesters who clashed with police throughout the day outside the auction's venue, a local hotel, which was guarded by 1,000 troops and police.
    Police unleashed tear gas to drive back the protesters as clashes continued.
    Petrobras, as the Brazilian company is known, took 40 percent of the field, 10 percent above the legal minimum. France's Total SA and Anglo-Dutch Royal Dutch Shell Plc will each have 20 percent while China National Petroleum Corp and China's CNOOC will each have 10 percent.
    The companies will give 41.65 percent of their profit oil - or oil produced after initial investment costs are paid - to the Brazilian government under a new production-sharing contract.

    "I present the winner of the first production season organized by consortium: Petrobras, Shell Brasil, CN Total, CNPC, CNOOC, with a view on the profit oil offered to the federal government of 41.65 percent," said an official as the auction came to a close.
    Libra holds between 8 billion and 12 billion barrels of recoverable oil.
    Oil unions in Brazil last week launched a strike against the planned sale and some groups have gone to court to try to stop the auction, calling it a sell-out of precious national resources to foreign interests.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2013. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register