Low oil prices and a massive corruption scandal are expected to dampen interest on Wednesday in Brazil’s first auction of oil and natural gas exploration and production rights in nearly two years.
Despite official hopes that the auction could ease pressure on Brazil’s once-booming, now embattled petroleum industry, few outside the government expect it to be anything close to the success sought by industry regulator ANP, which is running it.
Not only has the price of oil fallen more than 50 percent since the last auction, slashing industry revenue and potential profit, Brazil’s principal oil company, state-run Petroleo Brasileiro SA, is mired in a giant kickback scandal.
With $130 billion in debt and a backlog of existing projects, Petrobras, as the company is known, has not said if it will bid. In all previous auctions Petrobras, alone or as a member of a group, was responsible for half or more of sales.
Brazil Energy Insight 
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