Contracts for the 4th and 5th rounds of sharing are signed at a ceremony at the Palácio do Planalto

contracts

The seven contracts related to the blocks sold at the 4th and 5th Production Sharing Rounds at the Ceremony on the Advances in the Oil and Gas Sector – Cycle 2016-2018, held at the Palacio do Planalto

During the ceremony, presided over by the President of the Republic, contracts were signed by Minister of Mines and Energy, Moreira Franco, ANP Director General Décio Oddone, PPSA President Ibsen Flores and representatives of the ten winning companies. Also present at the ceremony were ANP Directors Dirceu Amorelli, Aurélio Amaral and Felipe Kury.

The two public bids totaled R $ 10 billion in subscription bonus and R $ 1.74 million in minimum exploratory investments.

The 4th Production Sharing Bid Round was held on June 7, 2018, when seven winning bidders won three of the four blocks offered. The average premium of oil surplus offered was 202.3%, collection with signing bonus was R $ 3.15 billion and commitments on minimum exploratory investments were in the order of R $ 738 million.

The 5th Round of Production Sharing Bidding was held on September 28, 2018, when the four blocks offered were won by eight winning bidders. The goodwill of the oil surplus was 170.58%, the collection with signing bonus was R $ 6.82 billion and the minimum exploration investment commitments were in the order of R $ 1 billion.

In the bids under the production sharing regime, the winning companies are those that offer the Brazilian State, from a minimum percentage fixed in the bid, the largest portion of oil and natural gas produced (ie the largest portion of surplus in oil). The signature bonuses, also determined in the edict, are fixed. It is estimated that the rounds held in 2017 and 2018 (including concession and share) generate around R $ 448 billion in investments and R $ 1.7 trillion in taxes.

See below the contracts signed today:

Source: Redação/Assessoria MME

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