Petrobras announced on September 17 that it had signed production-sharing contracts for eight offshore exploration blocks in Ivory Coast, taking a 90% operating stake in each block while state-owned Petroci holds the remaining 10%. The Brazilian energy giant is looking to replenish reserves beyond Brazil, since production from its pre-salt fields is expected to peak around the middle of the next decade, and it will need to add about 9 billion barrels of oil equivalent to its reserves through 2050 to maintain current production levels. Petrobras has earmarked $7.1 billion specifically for exploration over the next five years and plans to make Africa its main exploratory region outside Brazil, following earlier pursuits in Ghana, Namibia, and Sao Tome and Principe. The Ivory Coast blocks are still exploration assets rather than producing fields, so they add no immediate revenue or earnings, and even a discovery would take years of development before material production could begin. The 90% stake gives Petrobras substantial control over exploration and potential development decisions, but also leaves it responsible for most of the exploration expenditure and execution risk.
Petroleo Brasileiro Petrobras SA ADRPetrobras signed production-sharing contracts for eight Ivory Coast offshore blocks, taking a 90% operating stake, expanding its exploration portfolio and reserve-replenishment pipeline.
Chevron Corp
Transocean Ltd
Targa Resources Inc
Dalipal Holdings Ltd
Exxon Mobil CorpPetroci holds the remaining 10% stake in each of the eight Ivory Coast offshore blocks alongside Petrobras, gaining a partner to fund and operate exploration.
