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27/10/2017 - 17:01hs

Federal government grosses USD 1.89 bn through oil tenders

The second and third bidding rounds for pre-salt area production sharing agreements were held this Friday. Winning bids were placed for six out of eight blocks on offer.

Rio de Janeiro – Oil company consortia made winning bids for three out of four oil blocks tendered this Friday (27) by Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP) in the Third Bidding Round for production sharing agreements concerning the pre-salt area. The areas tendered require exploration activity. Signature bonus payments came out to BRL 2.85 billion (USD 876 million), and investments are expected to reach BRL 456 million (USD 140 million). The only block for which no bids were made was Pau Brasil, in the Santos Basin.

The Second Bidding Round, also held today, saw BRL 3.3 billion (USD 1 billion) worth of bonus payments and BRL 304 million (USD 93.4 million) worth of investments expected. Here, there were also winning bids for three out of four blocks on auction. The only block with no bids was Sudoeste de Tartaruga Verde, in the Campos Basin.

Total signature bonus payments came out to BRL 6.15 billion (USD 1.89 billion). The blocks will be explored under production-sharing contracts, meaning that the Brazilian federal government will retain part of the output.

The rate of production earmarked for government range from 80%, for the Entorno de Sapinhoá block, in the Santos Basin, auctioned to a consortium formed by Petrobras, Shell and Repsol Sinopec – to 11.53% for Sul de Gato do Mato, also in the Santos Basin, which will be operated by a consortium comprising Shell and Total E&P do Brasil.

*Translated by Gabriel Pomerancblum

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