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Chinese Companies Dominate The Most Recent Oil Auction by The Union, Setting Records For Volume and Buyer Diversification.
The most recent oil auction by The Union has made history, bringing an unprecedented diversification of buyers, with absolute prominence for Chinese companies. At the event held by Pré-Sal Petróleo S.A (PPSA) on July 31 at B3, about two-thirds of the barrels were acquired 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 Chinese companies, consolidating the presence of the Asian country as the main destination for The Union’s oil. The change in pricing, now based on Brent, and the significant increase in the volumes offered were the main attractions for foreign companies, according to Tabita Loureiro, interim president of the PPSA.
“The more volume in the market, the greater the interest. Additionally, the new contractual conditions and confidence in the delivery of this oil were decisive,” stated Loureiro.
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The Impact of China and The Consolidation of The Pre-Salt
The entry of Chinese oil companies into the Brazilian market is not new, but the most recent auction marked a significant advancement. Since 2013, with the first auction under the sharing regime, Chinese companies had already integrated into consortia in the pre-salt. However, the current international pricing model, combined with the increasing volume, has created a more attractive and competitive environment.
The auction on July 31 recorded the largest number of participants in history, with 10 qualified companies. Additionally, the future revenue has been revised to R$ 17 billion, exceeding initial expectations of R$ 15 billion. This was the highest value ever reached for The Union’s oil.
Results and Perspectives
With a focus on the future, the PPSA plans new studies and auctions. Among the new initiatives is an analysis of long-term contracts for refining The Union’s oil, aiming to expand the national refining chain. Additionally, planning includes the natural gas associated with the pre-salt fields, with the goal 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, market confidence in events like 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 its position as the main partner in this new phase of the Brazilian industry.
Que “MARAVILHA” , enquanto vendemos petróleo para a China, aqui nas bombas pagamos uma fortuna pelo combustível.
Certamente esse dinheiro todo irá desaparecer no **** do governo e seguimos sem retorno algum.
AQUI É O BRASIL !!!!!!!
Picanha para os picanheiro e mão de ferro para os próprio povo, em Rondônia garimpeiros tem suas dragas incendiadas presos e oprimidos pela ambiental sem chance de legalização, mas para país ditador até urânio matéria prima para produzir a bomba atômica pode, o potássio da Amazônia não pode tirar para abastecer o próprio mercado, isso e um deplorável um governo destruindo o próprio povo!
Pura verdade. Um governo com uma mente “pseudo-socialista-que-adora-gastar”, terá sempre a tendência de acabar com o próprio país.
Quanto mais esculhambado, mais fácil de roubar.
😂😂tô gostando de ver,isso porque já foi anunciado pra janeiro um “realinhamento “no preço do petróleo e combustíveis no Brasil 😂quero ver gasolina a $50 e diesel a$60 o litro para ver se esses jumentos aprende ter consciência política.😂😂