Recently, several Brazilian oil giants have united to oppose the merger plans of the country's two major oilfield services companies. They have pressured the national antitrust authority to delay the transaction process or to split the related businesses. The merger of these two oilfield services companies would create an industry giant focused on deep-sea oil and gas services, dominating the relatively concentrated deep-sea oilfield services market in Brazil.

The Brazilian Petroleum Industry Association has issued a warning, stating that this merger could lead to higher oil and gas development costs, project delays, and might force operators into long-term exclusive contracts, reducing market competition. A special report submitted by TotalEnergies indicates that the new merged entity would control 8 out of 12 high-performance subsea vessels globally, and even with remedial measures, it would be challenging to completely eliminate the market competition risks it poses. ExxonMobil and Brazil's state oil company have also urged antitrust authorities to either block the deal or require the merging parties to divest some core assets.

Although the merging parties anticipate completing the transaction by the end of 2026, the Brazilian antitrust authority has requested additional information from both companies and is coordinating with regulatory bodies in Brazil and several other countries. The merger has been approved by the UK, and the outcome of the review in Brazil will be a critical factor in determining the progress of the transaction. The pace of consolidation in the global oilfield services industry has been accelerating in recent years, and this event highlights once again the concerns of oil operators regarding the risks associated with supply chain centralization.