Brazil oil group seeks changes to local-content rules


Brazil's national oil-industry association, IBP, released a list of suggestions for regulatory changes on Monday that it hopes will boost exploration activity in the wake of falling oil prices, high costs, delays and a graft scandal at state-run oil company Petrobras.

Oil & Gas

Karoon Gas confirms Santos oil discovery


Karoon Gas Australia has confirmed its oil discovery in Brazil's offshore Santos basin. The company said it had encountered a 213 metre gross oil column in the Echidna-1 exploration well from wireline pressure data across the Paleocence and Maastrichtian aged reservoir intervals. Karoon managing director, Robert Hosking, said:"The Echidna discovery represents another significant achievement for Karoon. Echidna adds incremental resource to Karoon's discovered Kangaroo oil field which further supports Karoon's ambitions to develop an integrated production hub in the Santos Basin."


Treasurer held in Petrobas corruption case


Police detained the treasurer of Brazil’s governing party in a wide-ranging investigation into corruption at state-run oil giant Petrobras. The Workers’ Party said later he had asked to resign from the post. Joao Vaccari Neto was detained in Sao Paulo as he was heading out for an early morning jog, police told a news conference in the southern city of Curitiba, where the investigation is being led. An arrest warrant also was issued for Mr Vaccari’s sister-in-law, and his wife was questioned in connection with a series of unidentified deposits in her account that investigators suspect might be related to a bribery scheme at Petrobras.

Other News

Petrobras board to review delayed 2014 audited results April 22


Petroleo Brasileiro SA plans to release 2014 audited financial results April 22 after a five-month delay, averting a potential acceleration of debt payments. The Rio de Janeiro-based oil producer, at the center of Brazil’s largest corruption scandal, said Monday it will present the long-delayed financial results to its board and release them after approval. “The company expects to release these financial statements after the meeting, subject to a decision by the Board of Directors,” Petrobras said in a regulatory filing.

Market info

Shell buying BG to ease Petrobras stress in key Brazilian arena


Royal Dutch Shell Plc’s acquisition of BG Group Plc not only increases access to deep-water fields in Brazil, but provides greater heft in dealings with Petroleo Brasileiro SA, the local partner mired in a graft probe. With Petrobras engulfed in Brazil’s largest ever corruption scandal, BG and other partners are struggling to communicate with the state-controlled producer’s management to address delays to development plans. For BG and Galp Energia SGPS SA, which are relying on future Brazilian output to bolster cash flow, this uncertainty is a bigger problem than for Shell, which has a larger and more diversified portfolio. “Shell has more patience and financial strength,” Juan Ramon Fernandez Arribas, an independent analyst based in Madrid, said in an e-mail. “It can wait more to develop its projects and is a more solid operator than BG. That’s a big advantage in the discussions with Petrobras.”

Market info

Petrobas sells of Argentina assets


Petrobas has sold off assets in Argentina in a $101million deal with Compania General de Combustibles. The company will sell all its assets in the Austral Basin, in the Santa Cruz province and is the first disposal of a Petrobas asset under the 2015-2016 divestment plan.

Other News

Engineering firm files for bankruptcy after Petrobas scandal


Engineering company Galvao Engenharia has filed for bankruptcy following the Petrobas scandal. The firm had its payments cut off by the state-run oil company following an alleged corruption scheme. However Grupo Galvao, the firm's parent company, said it had no part in the alleged corruption involving Petrobas.

Market info

S&P Cuts Petrobras’s credit-rating outlook amid corruption probe


Petroleo Brasileiro SA had the outlook on its credit rating cut by Standard & Poor’s as the oil producer faces difficulties in financing investments amid Brazil’s largest-ever corruption probe. S&P cut the outlook on Petrobras’s BBB- rating, the lowest investment grade, to negative from stable, according to a statement Monday. The announcement comes a month after Moody’s Investors Service chopped its rating on the state-run oil producer by two levels to junk grade.

Other News

Protests in Brazil amid fall-out from Petrobas scandal


Hundreds of thousands of Brazilians have marched peacefully in more than 150 cities around the country to demand President Dilma Rousseff’s impeachment and to criticise government corruption amid a sprawling graft inquiry at state-run oil firm Petrobras. The biggest of the protests, held on the 30th anniversary of Brazil’s return to democracy after a long military regime, took place in Sao Paulo, an opposition stronghold where some 210,000 gathered on a main avenue, according to the polling institute Datafolha, one of the only entities in Brazil that makes scientific crowd estimates. Large rallies were also seen in the capital Brasilia, the southern city of Porto Alegre and in Rio de Janeiro.

Oil & Gas

Brazil’s president calls for patience amid oil corruption probe


Brazilian president Dilma Rousseff has asked citizens for patience as the country deals with a flagging economy and a widening corruption probe involving the state-run oil company and dozens of top politicians. In a nationally televised address, Ms Rousseff said her government will move to fix a serious fiscal problem after posting a primary budget deficit for the first time in more than a decade.

Health & Safety

Six fatalities now confirmed following explosion in Brazil


BW Offshore said six people are now confirmed to have died following an explosion onboard an FPSO (Floating Production, Storage and Offloading ) unit in Brazil. Three crew members are still missing following the incident one week ago with search and rescue operations continuing. Another five personnel are continuing to receive medical attention in hospital, the company said.

Renewables/Energy Transition

Brazilian consortium awarded turbine contract


The Força Eólica do Brasil consortium have awarded Gamesa a contract to supply 42 state-of-the-art wind turbines to the three wind farms in Brazil. Gamesa will install the G114 wind turbines with a unit capacity of two megawatts (MW) at the windfarms and will be in charge of supplying, transporting, installing and commissioning 15 wind turbines for the Santana 1 windfarm.

Oil & Gas

BG Group and Petrobas submit DoC for Iara


A Declaration of Commerciality (DoC) has been submitted to the Brazilian National Agency of Petroleum, Natural Gas and Biofuels for three separate oil and gas accumulations in Brazil. BG Group said it had, along with its partner Petrobas, submitted the application which it believes is another major milestone in the first phase of development of BG Group’s interests in the region. The Iara area is located approximately 250 kilometres off the coast of Rio De Janeiro in water depths of around 2,270 metres.

Oil & Gas

Karoon Gas hits five oil bearing reservoirs in Santos Basin


Karoon Gas has encountered five separate oil bearing reservoir sand intervals in its Kangaroo-2 appraisal well in the Santos Basin. The company said it had made the discovery within the Palaeocene and Maastrichtian formations in waters offshore Brazil. Work is now continuing to assess the impact of the well results on the resource size as no gas cap was penetrated and there was shallower oil water in some of the sands.