Scotia Waterous, the energy mergers and acquisitions business of Canada's Bank of Nova Scotia, said it expects billions of dollars worth of deals for Brazilian oil assets this year as global oil companies either look to sell their assets in the South American country or seek to tap into the country's flourishing oil business.
BP (BP), Europe's second-largest oil company, and PetroChina (PTR), China's largest oil company, are among the global oil giants looking to increase their profiles in Brazil. Brazil is South America's second-largest oil producer behind Venezuela.
Sinopec (SNP), Asia's largest refiner, spent $7.1 billion to acquire 40% of Repsol YPF's (REP) Brazilian business. Scotia Waterous advised Sinopec on that deal, according to Bloomberg News.
The bank said it expects Chinese oil companies to remain active in their pursuit of assets in Latin America. Scotia Waterous advised on $16 billion of $30 billion in Latin American energy mergers and acquisitions activity in 2010, Bloomberg reported. Brazil's oil regulator says the country's pre-salt oil finds hold up to 50 billion barrels of reserves.