Defined rules and date of the Transfer of Rights Surplus auction

February 28, 2019

The CNPE sets forth the first bidding guidelines for excess volume, establishing payment of compensation to Petrobras by the winners

The auction of the Transfer of Rights surplus will be held on October 28, providing for the payment to Petrobras, by the winning companies, of a value to offset the investments already made by the Brazilian oil company. The bidding will offer four areas – Atapu, Búzios, Itapu and Sepia – all under the regime of production sharing.

The guidelines of the auction were approved by the CNPE this Thursday in a meeting held solely to address the issue. The payment of the compensation is part of the partnership agreement, the name given by the Ministry of Mines and Energy to the process of unitization made in Transfer of Rights assignment. On the other hand, the winning companies will acquire a part of the assets and the production.

The premises of compensation will be defined in the coming weeks and approved by CNPE at a new meeting in March. It was established that, for the first time, the government will participate in the establishment of rules for the calculation of compensation. The percentage of participation of each company in the projects will be defined based on the excess volumes in relation to the original volumes of the Transfer of Rights assignment.

Petrobras and the winning companies will have to sign an agreement to establish the unification of the operation. In the coming weeks, the government will also define the signing bonus values ​​and the minimum percentage of profit oil.

The contract for the Transfer of Rights assignment was signed with Petrobras in 2010. At that time, the oil company was entitled to produce up to 5 billion boe in the areas of Florim, Franco, Guará, Enará de Iará, Tupi and Nordeste de Tupi, in the Santos Basin. The value of the equivalent oil barrel was estimated at US $ 8.51, which generated a US $ 42.5 billion disbursement by the oil company.

Petrobras negotiated with the government the terms of the contract review. The oil company has to receive, but for now, there is no definition if the payment will be made in kind or in oil.

The exploratory work carried out in the region resulted in the discovery of ten fields: Itapu, Búzios, Sul de Sapinhoá, Norte de Berbigão, Sul de Berbigão, Norte de Sururu, Sul de Sururu, Atapu, Sul de Lula and Sepia.

Source: BE Petroleum

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