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Chinese companies dominate the Union's latest oil auction, which broke records for volume and buyer diversity.
The most recent oil auction by the Union made history, bringing an unprecedented diversification of buyers, with a clear focus on Chinese companies. At the event held by Pré-Sal Petróleo SA (PPSA) on July 31, at B3, around two-thirds of the barrels were purchased by Chinese state-owned companies, such as PetroChina and CNOOC.
In total, 23 million barrels – out of a total of 37,5 million offered – were purchased by the Chinese, consolidating the presence of the Asian country as the main destination for oil of the Union. The change in pricing, now based on Brent, and the significant increase in volumes offered were the main attractions for foreign companies, according to Tabita Loureiro, interim president of PPSA.
“The greater the volume in the market, the greater the interest. Furthermore, the new contractual conditions and the confidence in the delivery of this oil were decisive,” stated Loureiro.
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The impact of China and the consolidation of pre-salt
The entry of Chinese oil companies into the Brazilian market is nothing new, but the most recent auction marked a significant step forward. Since 2013, with the first auction under the sharing regime, Chinese companies have been part of pre-salt consortia. However, the current international pricing model, combined with the growing volume, has created a more attractive and competitive environment.
The auction held on July 31st saw the highest number of participants in history, with 10 companies qualified. In addition, future revenue was revised to R$17 billion, exceeding initial expectations of R$15 billion. This was the highest value ever achieved by the Union's oil.
Results and perspectives
With its focus on the future, PPSA is planning new studies and auctions. Among the new developments is the analysis of long-term contracts for refining the Union's oil, aiming to expand the national refining chain. In addition, the planning includes natural gas associated with pre-salt fields, with the aim of reducing infrastructure costs and maximizing returns for the Pre-Salt Social Fund.
China, the world's largest oil importer, will continue to be a key player in the Brazilian market. In 2023, the Asian country accounted for 27% of international oil purchases, reinforcing its strategic position in global trade.
With the international scenario still surrounded by volatility, the market's confidence in events such as the July auction shows that the Union's oil is a relevant and competitive asset in the global market. And, as the results indicate, China seems to have consolidated itself as the main partner in this new moment for Brazilian industry.
We sell our oil; our uranium, niobium... the Chinese are buying everything they can. It won't be long before they control everything here and since corruption in Brazil is rampant, they will even be able to change the laws to favor them.
Dude, I didn't see you saying that when the US and EU bought it.
Then the headline would be: Multinational will generate many jobs!
Bolsonaro alone privatized 63 Petrobras assets.
. BR Distribuidora – PCC bought more than 1.100 ⛽ + 5 ethanol plants. PCC already names the ⛽ and evades taxes
. Bolsonaro also gave the Alcântara Base for free to the 🇺🇸 and 🇨🇦 – 🇧🇷 was expelled from his base and now has to launch rockets from another location WITHOUT structure.
. Bolsonaro authorized the installation of 19.000 Starlinks over the Amazon – Elon Musk can now monitor, map and spy on the greatest riches of the 🇧🇷 in real time, gold deposits, rare minerals and oil.
. Bolsonaro destroyed the biggest companies 🇧🇷 that make a profit to sell in exchange for 🍌 and he earns 💎💍⌚etc and betrays the country
All he did was harm the 🇧🇷 and turn it into a global exploitation colony.
Monstrous, foolish and ****.
Huh….DID YOU FORGET??????
Lula gave Bolivia a refinery for free.
He gave BILLIONS to communist Cuba!!!!! and African countries, which will never be returned. And he even welcomed Maduro with a red carpet…
IT'S A JOKE, RIGHT?
The Chinese fulfilled the agreement, financed the construction of Petrobras platforms for the pre-salt layer when no one wanted to lend money to the company and BOUGHT the oil produced by the union on these platforms. Nothing for free.