Petrobras plan to exercise preferential rights in upcoming auctions

Brazil’s state oil firm Petrobras will exercise its preferential rights in two offshore oil auctions later this year, according to Reuters.

The country’s Mining and Energy Minister, Fernando Coelho Filho, revealed the news but did not say in which particular fields or projects the heavily-indebted company would use its option.

Preferential rights in the oil industry refer to a situation in a joint operating agreement where a party has the right to buy the mineral interest of another party to the project when that latter party decides to sell.

Minister Coelho Filho did say, though, that Petrobras would not be exercising preferential rights in all of the pre-salt areas that would be on offer at the auctions in October.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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