First Friday Q&A on Oil & Gas This Week – OGTW129

Since I started listen the podcast, I believe just once y’all talked about the Brazilian Oil and Gas industry and the opportunities over there.

The Brazilian economic team headed by finance minister Henrique Meirelles (former global executive from Bank Boston) is putting the country back on track in the economic area. The current inflation rate for Brazil is 2.54% for 12 months ended September 2017; expected GDP for 2017 is +0.7% and for 2018 is +2.50%, putting an end of almost three years of economic recession; Central Bank is cutting the interest rates to a low value history.

Additionally, some laws were changed in order to give more competitiveness to the industry. The Brazilian state-owned Petrobras is not obligated by law to be the operator with a minimum of 30% share in the pre-salt fields and more relaxed rules for the local content policy.

I’m giving that economic/regulatory introduction because this Friday Brazil will hold their first pre-salt auctions since 2013. The expectation is that a lot of majors will bid and return their operations back to Brazil. Also, the Brazilian government foresees receive payments in the amount of US$2.9 Billons just as bonuses.

(https://www.reuters.com/article/us-brazil-oil/brazil-auction-tests-oil-major-appetite-for-deepwater-fields-idUSKBN1CU1FS)

Pre-salt fields are highly productive (some wells are producing almost 40,000 barrels per day), with a good oil quality and constantly cuts in the operational costs year in year out.

As said, I would like to know from you guys what do you think about pre-salt fields, the future of deep water production, the possibilities from Brazil in this field and so on.

Also,

You guys are constantly talking about the Saudi Aramco IPO. I’ve read an article in the Financial Times about the possibility that Saudi Aramco will cancel the international listening in favor of a private share sale especially for foreign government’s funds.

(https://www.ft.com/content/42b521c0-b028-11e7-beba-5521c713abf4)

It would be interest to hear from you what your thoughts about this news are.

Howdy, I am a graduate student studying geology and am preparing for a career in the oil and gas industry. What are some technical and/or personal skills you have found to be invaluable in this field? Are there any skills you have refined through industry experience that you did not possess initially? Suggestions on ways or opportunities to develop this skill set would be appreciated. Thank you.