Government plans one oil auction per year until 2021

June 6, 2018

BRASÍLIA – The National Council for Energy Policy (CNPE) plans to hold a round of oil field bidding each year until 2021, in the concession modality. In a meeting of June 5th, the board proposed to hold the 17th and 18th rounds of block bids, respectively in 2020 and 2021.

The board also defined changes in the sectors and basins related to the 16th round of bids, already scheduled to occur in 2019. In the concession modality, the bidding process wins the company that offers the highest value to the government.

“Exploratory block bids are the main means of access for oil companies to areas for the development of exploration and production activities, which are of great importance for the strengthening of the oil industry in the country,” he said. Ministry of Mines and Energy.

For 2020-2021, the CNPE did not include new rounds with pre-salt areas to be contracted under the sharing regime.

The government expects to raise R $ 3.2 billion with the 4th round of bidding for pre-salt areas, to be held by the National Petroleum Agency (ANP) next Thursday in Rio. The auction will offer four exploration areas of the pre-salt, in the Campos and Santos basins, with production-sharing contracts.

The sharing regime is what governs the pre-salt contracts. In this model, the company contracted to explore an area yields part of the future production to the government and pays a fixed amount and previously defined, at the signing of the contract.

Source: Globo

 

 

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