--Denmark's Maersk Oil in Brazil for long term, says Luis Paulo
Costa
--Maersk Oil Brasil seeks to build portfolio via bid rounds,
acquisitions
--Company could drill three more wells by year-end, expects to
drill more than four in 2013
By Jeff Fick
RIO DE JANEIRO--The Brazilian unit of Denmark's Maersk Oil plans
to make one of the world's hottest new oil frontiers a core part of
its expanding global footprint, looking at expected offshore
concession auctions and potential acquisitions as a way to expand
the company's portfolio.
"We are in Brazil for the long term," Luis Paulo Costa, managing
director of Maersk Oil Brasil, said in an interview Monday.
Some of the world's largest oil discoveries in the past three
decades have been made in Brazil in recent years, and Maersk is
eagerly awaiting details of a much-delayed, 11th-round auction of
oil and natural-gas concessions. "We're very much interested in
seeing what's going to be offered for bid round 11," Mr. Costa
said.
Brazil's National Petroleum Agency, or ANP, had planned to hold
the bid round last year, but lawmakers continue to haggle over how
to distribute royalties from the newfound oil wealth. The lack of
new acreage up for bid "limits opportunities for oil and gas
companies," Mr. Costa said.
The dearth of fresh acreage has led to intense interest whenever
any offshore assets become available, a market Maersk is also
watching carefully. "Brazil has a unique combination of prized
resources and stable government that attracts companies and makes
the environment very competitive," Mr. Costa said.
Mr. Costa declined to give any specifics about potential
targets, but made clear acquisitions are "part of us growing in
Brazil."
The opportunity to buy into offshore concessions exists as
companies try to take advantage of interest in Brazil, driven in
large part by a series of ultra-deepwater discoveries known as the
presalt.
Anadarko Petroleum Corp. (APC) reportedly has put its offshore
Brazil portfolio up for sale. Brazilian mining company Vale SA
(VALE, VALE3.BR, VALE5.BR, VALE5.FR) has said it was considering
selling some exploration assets as it focuses on core mining
operations, while state-run energy company Petroleo Brasileiro
(PBR, PETR3.BR, PETR4.BR) could also sell some concessions as the
demands for developing the presalt increase.
Maersk is Anadarko's partner in two blocks that hold presalt
prospects, including a 20% stake in the Wahoo field and a 27% stake
in the Itaipu field. Drilling and analysis at the fields is
ongoing, but Mr. Costa said "we've got two discoveries that we're
excited about, that we're working on and that we hope to bring to
first oil."
The company's Brazilian portfolio also includes stakes in three
other offshore blocks also in the prolific Campos Basin, which
produces more than 85% of the country's crude oil. The company also
receives about 6,000 barrels of oil a day as part of its 40% share
of the Polvo offshore field, which BP PLC (BP.LN, BP) operates
after having bought the Brazilian assets of Devon Energy Corp.
(DVN) for $3.2 billion last year.
For now, Maersk will continue to work its current exploration
portfolio, Mr. Costa said. The company has drilled three wells so
far in 2012 and may drill another three before the end of the year.
While the exploration program for 2013 hasn't yet been defined,
Maersk expects to drill "more than four wells" next year, Mr. Costa
added.
Write to Jeff Fick at Jeff.Fick@dowjones.com
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