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CNOOC, Petrobras consortium lands contentious 35-year deal to develop Brazilian oil field

The consortium is comprised of CNOOC and Petrobras, Shell, Total and another state-owned Chinese oil firm China National Petroleum Corp (CNPC).



HONG KONG—A consortium of oil and gas companies including Chinese state-owned oil giant CNOOC Ltd. has won a 35-year production-sharing contract to develop the Libra pre-salt oil discovery in the Santos Basin, offshore Brazil.

The consortium is comprised of CNOOC and Petrobras, Shell, Total and another state-owned Chinese oil firm China National Petroleum Corp (CNPC).

CNOOC holds 10 per cent in the winning consortium, with the operator Petrobras owns 40 per cent, Shell owns 20 per cent, Total owns 20 per cent and CNPC owns 10per cent.

As part of the winning bid, CNOOC will pay 1.5 billion Brazilian Reals (approximately US$700 million) as its 10% share of the signing bonus.

A “minimum work program” will begin no later than 2017.

Libra field is located in Santos Basin, approximately 170 kilometers off the coast of Rio de Janeiro. The block covers approximately 1,550 square kilometers at depths of around 2,000 meters.

The recoverable resources are estimated to be between between 8 and billion barrels of oil and a total gross peak oil production could reach 1.4 million barrels per day.

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