Brazil leads in bonuses paid in oil exploration auctions in the world

11/12/18

Brazil has obtained 75% of all subscription bonuses paid at oil exploration auctions held worldwide since 2016. According to the director general of the National Agency for Oil, Gas and Biofuels (ANP), Décio Odonne, during this period , 82 countries made 100 processes of exploration areas and US $ 7 billion were contracted in the form of 3,000 block subscription bonuses.

Odonne added that of the total number of blocks offered in the world, 72 were offered by Brazil in the rounds it has held since 2016. “The 72 blocks in Brazil accounted for 75% of all subscription bonuses paid in the world since 2016. It is impressive when we compare the success we have had in attracting investors from other countries. A distant second is Mexico, “he said.

Upcoming auctions

As for the continuity of the ANP auctions with the change of government, Odonne stressed that he does not want to risk saying if the new government will comply with the auction schedule, but is optimistic about the interest that Brazil has aroused in this market and with investments in exploration that still have to enter the country.

For 2019, the 6th Round of the Pre-Salt is scheduled, the 16th Round of Bids of blocks under the concession regime in areas near the polygon of the pre-salt, in addition to the expectation of the auction of the oil surplus of the pre-salt, called onerous assignment. “We want and will continue attracting these investments,” he said.

Confident in the maintenance of the auctions, Minister of Mines and Energy, Moreira Franco, reminds that because of the mandate, the director general of the ANP will remain in the position until 2020. This, for the minister, will reinforce the market security in the area of oil and gas.

“He will stay because he has a job to do. We, the Brazilian society, need the strength and the financial return that this sector will give while it improves, not only  forthe fiscal conditions of the country, but especially the life of the people, “said the Minister of Mines and Energy.

Round 15

Last Wednesday (7), the ANP held the ceremony of the second stage of signatures of the contracts related to the 15th Round, held in March this year.

In this second stage, ten companies signed 12 contracts related to the 15th Round: BP Energy do Brasil Ltda.; Chevron Brasil Óleo e Gás Ltda.; Equinor Brasil Energia Ltda.; ExxonMobil Exploração Brasil Ltda.; Murphy Brasil Exploration and Production of Oil and Gas Ltda.; Petrogal Brasil S.A.; Queiroz Galvão Exploration and Production S.A.; Repsol Exploração Brasil Ltda.; Shell Brasil Petróleo Ltda.; and Wintershall do Brasil Exploração e Produção Ltda.

In the first stage, on September 11, ten contracts were signed by five companies: Equinor Brasil Energia Ltda.; Exxon Mobil Exploração Brasil Ltda.; Petróleo Brasileiro S.A.; QPI Brasil Petróleo Ltda.; and Shell Brasil Petróleo Ltda. These companies requested advance notice of the signing of the contracts, since the announcement of the 15th Round provides for signature until November 30.

Source: EBC

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