News

Chinese companies permitted to bid for Brazilian oil rights

The oil and gas authority in Brazil says the Brazilian arms of two Chinese state-owned enterprises are among 14 companies given permission to bid for the rights to explore for oil off the Brazilian coast that are due to be auctioned on November 6 and 7, Reuters reports.

The news agency, citing a written statement issued by the authority, says the 14 include the Brazilian subsidiaries of China National Offshore Oil Corp. and China National Petroleum Corp.

The report says the signing bonuses for the auction are expected to amount to over U$25 billion, the most yet.

On November 6 the rights to explore four areas in the Campos and Santos fields, off southeastern in Brazil, will be sold, giving the buyer the chance to tap an estimated 15 billion barrels of oil, the report says.

The next day the rights to explore areas with lesser potential will be sold, Reuters says.