Petrobras Dominates Southern Cone Oil Assets

Strategic Insights -

The Brazilian state oil company Petrobras has a dominant position in the upstream assets of the Southern Cone region, with more than half the value of the top 10 companies, totaling $21 billion in commercial reserves. This is according to a new study by UK consultants Wood Mackenzie. Petrobras' dominance is particularly significant in Brazil and Bolivia, where it controls the majority of future gas exports to Brazil due to its preferential access to the Bolivia-Brazil Pipeline. Repsol-YPF is the second-largest player in the region, with $8 billion in upstream assets, followed by Total Fina Elf with $1.2 billion. The study highlights the relatively weak position of Repsol in Brazil, despite its large holdings in Bolivia.

Key Takeaways:

  • Petrobras has $21 billion in commercial reserves, accounting for more than half the value of the top 10 companies in the Southern Cone region.
  • Repsol-YPF has $8 billion in upstream assets, making it the second-largest player in the region.
  • Total Fina Elf occupies third-place overall and the top spot among the second tier mainly because of its gas assets in southern Argentina.
  • Gas accounts for more than 65% of the oil/gas reserve mix for all of the companies, except Petrobras, showing the difference in the reserves base of southern Brazil compared with Argentina and Bolivia.
  • Petrobras has 10 billion barrels of oil equivalent reserves, making it a significant player in the region.
  • The acquisition of the 10% stake in Albacora Leste by Repsol indicates the company's desire to take full advantage of the Brazilian opening.
  • BG and Exxon Mobil rank among the top 10 in terms of remaining reserves, while Texaco will enter the top 10 producers in 2005, after the Frade field offshore Brazil begins producing oil.
  • Wood Mackenzie noted the relative absence of big US companies in the Southern Cone, compared with other regions open to foreign competition.

Statistics:

  • $21 billion: the value of Petrobras' commercial reserves in the Southern Cone region.
  • $8 billion: the value of Repsol-YPF's upstream assets in the region.
  • $37 billion: the total portfolio of commercial reserves of the top 10 companies in the region.
  • 65%: the percentage of gas in the oil/gas reserve mix for all of the companies, except Petrobras.
  • 10 billion barrels: the amount of oil equivalent reserves held by Petrobras.
  • 88%: the percentage of oil in Petrobras' reserve mix.
  • 350: the number of service stations acquired by Repsol in Brazil.
  • 5%: the possible additional stake in Albacora Leste that Repsol may negotiate through additional swaps.

Sources:

  • Wood Mackenzie
  • Petrobras
  • Repsol-YPF
  • Total Fina Elf
  • Perez Companc
  • Wintershall
  • Pluspetrol
  • Chevron
  • Tecpetrol
  • Bridas
  • BG
  • Exxon Mobil
  • Texaco