China National Offshore Oil Corporation (CNOOC) announced on December 1 that it had acquired another 5% stake in Búzios, the world’s largest deepwater oilfield. The total value of the transaction is $1.9 billion.
Búzios, with an average water depth of around 7,220 feet (2,200 m), is situated in the Santos Basin, southeast of Brazil’s coast.
Xia Qinglong, President of the company, said, “Acquiring additional interests in Búzios oilfield further expands the company’s presence in Brazil’s deep-water pre-salt region, where bountiful oil and gas resources reside.”
The Búzios project was put into production in April 2018. It is the largest integrated oil field in Brazil and the largest deep-sea oil field in the world. The current daily crude oil production reached about 600,000 barrels.
On November 6, 2019, in the block bidding held by the Brazilian National Petroleum Administration, a consortium composed of CNOOC, PetroChina and Petrobras won the bid.
This acquisition is another large-scale increase in CNOOC’s holdings after winning the bid for a 5% stake in the Búzios project in 2019. With a 10% stake, CNOOC has become the largest partner of Petrobras, the oilfield operator. Petrobras holds 85% interest and another partner holds the remaining 5%.
China has a deplorable environmental record within its own borders and all the promises it makes must be taken with a grain of salt. In other words, be careful of what the company does, not what it says it will do, especially within another country far away from its shores.
The company is deeply entrenched with the Chinese Communist party and all its senior leaders are communist party members and beholden to it. CNOOC currently owns 5 deepwater block assets in Brazil, including Búzios and Libra.