Offshore Activity

ANP oil exploration auctions may raise R $ 4.5bn in 2017

 

Press Release / Fernando Coelho Filho

 

Fernando Coelho Filho, Minister of Mines and Energy, said today (12) that the government expects to raise between R $ 3.5 billion and R $ 4.5 billion with the completion of the 14th round of bidding for oil and natural gas exploration blocks and the second Round of block auctions in the pre-salt, under the production sharing regime. Auctions are scheduled to take place this year.

“Three rounds have been announced for this year: the round of onshore, the second round of the pre-salt and the round for post-salt. We need to unite so that all of them are a great success, “said the minister.

According to the minister, the expectation is between R $ 3.5 billion and R $ 4.5 billion for the three rounds. “This figure is very conservative , since someone can offer more.” He also mentioned that by the end of this month the onshore, pre-salt and post-salt exploration areas will be published in the Official Gazette.

The minister said that the government is working to have onshore bidding done in May and that the second round of the pre-salt be held in the first half of the year. The post-salt areas should be auctioned in September.

Resumption of auctions

The minister stressed the need for the government to resume the regular schedule of oil and natural gas exploration auctions.

“We need to retink the auctions and we do not want to repeat the failure of the last one, either because Petrobras had the obligation to participate, or because of the difficulty of the company, or because of a series of questions and doubts that the industry was facing. We are solving all of them and our expectation is that we will be successful in this year’s auction and from then on we can have a regular schedule. ”

In the 13th round of bids, in October 2015, only 14% of the blocks offered were sold. Of the 266 blocks offered by the ANP, 37 were sold by the registered companies.

“The industry thinks the predictability of auctions is something positive. A regular schedule allows companies to prepare themselves, to better understand the Brazilian subsoil. Having companies that know the country, the processes are more competitive, “said the new director general of the ANP, Décio Oddone, who replaced Magda Chambriard.

Oddone stressed that the oil and gas sector in Brazil is experiencing a new momentum, with attraction of capital, agility in processes and facilitation of investment with the goal of generating jobs and income.

Categories: Offshore Activity

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