BP Looking To Buy More Brazil Assets

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Fresh off finally gaining regulatory approval for its $3.2 billion purchase of Devon Energy's (DVN) Brazil assets, BP, Europe's second-largest oil company, is on the prowl for more purchases in the oil-rich South American country.

In a bid to boost output, which has been in decline due to massive asset sales, BP (BP) is turning to countries such as Brazil and Russia to gain new reserves. BP said it currently has several negotiations underway to acquire Brazilian assets, but the company did not disclose what companies it is in talks with.

BP's assets in Brazil include 10 blocks, but only one of them is in production phase with output of around 25,000 barrels per day, Reuters reported. Brazil, South America's second-largest oil producer behind OPEC member Venezuela, is scheduled to hold oil auctions in September and BP has confirmed it will participate in those auctions.

BP, which is planning to spend $20 billion this year on new and existing projects, is also involved in the production of ethanol in Brazil. Brazil is the world's second-largest ethanol producer behind the U.S. and the world's largest exporter of the fuel.