Chinese oil firms expand footprint in Brazil’s pre-salt sector

Chinese oil firms have further cemented their footprint in South America following a successful auction conducted by the National Agency of Petroleum, Natural Gas and Biofuels in Rio de Janeiro. According to news reports and government announcements, the recent bidding process saw major industry players expand their offshore interests significantly, 

China National Offshore Oil Corporation and China Petroleum and Chemical Corporation (Sinopec) secured the Santos Basin block with a signing bonus of approximately US$20.8 million. Within this venture, China National Offshore Oil Corporation will hold a 70 percent stake and act as operator, while China Petroleum and Chemical Corporation will own the remaining 30 percent.

This latest award naturally builds upon an existing partnership between the two corporations concerning the Ametista exploration block, which is also located in the Santos Basin. Their production-sharing contract for that particular project was officially signed earlier this year. 

Meanwhile, the reports say that Norway’s Equinor secured the Rubi block independently and partnered with Portuguese energy firm Galp for the Rodocrosita block. Equinor is set to operate Rodocrosita with a 70 percent stake, leaving Galp with 30 percent, supported by a signing bonus of US$4.1 million.

Chinese oil firms: long-standing cooperation

The involvement of Chinese oil firms in Brazil’s exploration and production landscape dates back at least to 2010. During that period, China Petroleum and Chemical Corporation invested US$7.1 billion to acquire a 40 percent stake in Repsol’s Brazilian operations, subsequently establishing Repsol Sinopec Brasil. In 2012, the company also acquired a 30 percent stake in Petrogal Brasil, which operates as Galp’s local subsidiary.

[See more: China-developed vessel departs for Brazilian bridge project]

Furthermore, China National Offshore Oil Corporation and China National Petroleum Corporation joined the Libra consortium in 2013. Each entity secured a 10 percent stake alongside major international energy partners including Petrobras, Shell, and TotalEnergies, with Libra encompassing the productive Mero oilfield.

At present, the established offshore interests of these Chinese enterprises remain heavily concentrated across both the Santos and Campos basins. 

Through Repsol Sinopec Brasil, China Petroleum and Chemical Corporation maintains active participation in the productive Sapinhoá and Lapa fields in Santos, alongside Albacora Leste in Campos. Additionally, China National Petroleum Corporation holds interests in Búzios and the Aram exploration block.