Brazil: CADE approves reshuffle of Equinor, Exxon, and Galp oil venture

Brazil´s Administrative Council of Economic Defense (CADE) has cleared the reshuffling operation for holdings held by Exxon Mobil, Galp and Equinor in block BM-S-8, one of the most promising areas within the Los Santos oil field.

Following the approval the block will be operated by Norwegian Equinor, with a 40% stake, in partnership with US company Exxon Mobil (with 40%) and Galp (20%). With that, Brazilian Barra Energia would leave the consortium, in which it held 10%.

The block remains in the exploration phase and, therefore, there a commercial declaration had not yet been made. The companies will continue to implement the discovery evaluation plan (PAD). In its opinion, the CADE pointed out that the oil market has a predominant participation by Petrobras which, according to ANP figures, represents 92% of the oil production market and 90.5% of gas production as a concessionaire.