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Chinese oil giant invests nearly $2 billion in Brazil

China's CNOOC has bought a stake in a production-sharing contract in the huge offshore Buzios oil field in Brazil.

Brazil’s state-owned oil company Petrobras said in a statement that it has sold a 5% stake in a production-sharing contract in the giant offshore Buzios oil field to Chinese oil and gas giant CNOOC for $1.9 billion.

The deal will only come into force after approval from Brazil’s energy and mines ministry. Once approved, Brazil’s Petrobras will have an 85% stake, the CNOOC unit Petroleum Brasil Ltda. (CPBL) will have 10% and CNODC Brasil Petróleo e Gás Ltda (CNODC) will have 5%.

Images of an oil exploration platform, Brazil

Buzios is Petrobas’ largest oil field

The Buzios oil field is a huge ultra-deepwater oil field located approximately 230 km off the coast of the famous Brazilian city of Rio de Janeiro. This field was discovered in 2010 and is Petrobas’ largest oil field.

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It currently produces more than 600,000 barrels of oil per day and is expected to expand its production capacity even further in the future. by 2026, Bulios is expected to account for approximately one-third of the entire production of this large Brazilian state-owned company. This information appeared in the company’s quarterly results, along with a plan for the next stages of development.

Brazil is breaking records in its production

According to industry watchdog ANP, Brazil is breaking records in terms of gas and oil production. In October, it managed to produce an average of 4.18 million barrels of oil equivalent per day, including 3.24 million barrels of oil per day and 148.7 million cubic meters of natural gas per day.

The last record in oil and gas production was recorded in September this year and this record was increased by 3.2% in October. Compared to October 2021, production was even 16% higher.

Bruno is an Investment enthusiast with several years of experience in the industry. He enjoys following the latest news and technology trends...

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