The auction of oil surplus from the Transfer of Rights assignment, which is scheduled by the Ministry of Mines and Energy (MME) to take place on October 28, led the Petrobras Exploration and Production director, Carlos Alberto Pereira de Oliveira, to meet with five of the main international oil companies operating in Brazil in February. On the agenda, the updating of partnerships between companies.
Petrobras will have the option of being the operator of the four areas that will be tendered in the auction of surplus of the Transfer of Rights assignment, since the auction will offer areas in the regime of sharing of production. The winning companies will have to indemnify Petrobras for the investments made in the areas, where investments in production development are currently underway.
The first company to arrive was Shell. Shell Brazil president André Araújo and Upstream director Andrew Brown were with Petrobras’ E & P director and Exploration Executive Manager Mario Carminatti on February 5.
Shell has been the main player in the pre-salt auctions after the end of Petrobras’ sole operator in the pre-salt polygon. It has disputed and closed areas in all five pre-salt auctions between 2017 and 2018.
It was not, however, a partner of Petrobras in any of these auctions, with the exception of the first auction in 2013, of the Libra area. Shell’s preferred partner in the auctions was Chevron. Together the companies won the areas of Três Marias and Saturno, in the 4th and 5th pre-salt auctions. They tried, together with the QPI, to close the Uirapuru area, which ended the consortium Equinor, ExxonMobil and Galp.
Shell was surprised at the 5th pre-salt auction when they disputed the Titan area with Ecopetrol, and ended up taking a slice of the Pau Brasil block in the auction in partnership with BP and China’s CNOOC.
BP was the second to arrive at Petrobras’ E & P director. On February 13, Adriano Bastos, president of the company in Brazil, and Felipe Arbelaez, Regional President of BP for Latin America discussed the update of the partnership with Carlos Alberto Pereira de Oliveira. BP is Petrobras’ main partnership in the pre-salt auctions.
In partnership with Petrobras, they were winners of the Peroba area and Alto de Cabo Frio Central, in the 3rd pre-salt auction, and the Dois Irmãos area in the 4th round, which also includes Equinor.
In the 5th pre-salt auction, BP managed its first Brazilian pre-salt operation with the Pau Brasil area, which it won in partnership with Ecopetrol and CNOOC.
Equinor Brasil president Margareth Øvrum and Veronica Coelho, the company’s Senior Vice President of Strategy and Portfolio, also met with the E & P director of Petrobras discussing the updating of their partnerships.
The companies are partners in the Uirapuri project, awarded at the 4th pre-salt auction. Although the original and winning consortium was formed by Equinor, ExxonMobil and Petrogal, Petrobras exercised its right of first refusal after losing the dispute for the area and entered the project as operator. The consortium offered a bonus of R $ 2.6 billion for the project.
They are also partners in the Dois Irmãos project, won at the same auction and where Petrobras also exercised its preference after losing the direct dispute for the area. Equinor was registered but did not submit bids in the 5th pre-salt auction.
Arnaud Breuillac, CEO of Total E & P, and Philippe Blanchard, president of Total E & P Brazil, met Carlos Alberto Pereira Oliveira on February 18. Total participated in all the pre-salt auctions so far and in the 2nd auction, in conjunction with Shell, in the South area of Gato do Mato.
It was a partner of Petrobras and BP in the area of Três Marias and Uirapuru, in the 4th pre-salt auction. It ended up losing the dispute in both competitions.
In the 5th pre-salt auction, it repeated the partnership with Petrobras to compete for the Pau Brasil block, this time in a consortium that also had the Chinese CNODC. It ended up losing the dispute to the consortium formed between BP, Ecopetrol and CNOOC.
The last major to meet with the Petrobras director was Repsol on February 25, Tomás García Blanco, E & P Director General Repsol Madrid, and Mariano Ferrari, CEO Repsol Sinopec Brasil, were with Carlos Alberto Pereira Olivera.
Repsol was registered in all pre-salt auctions. They participated in the area of Entorno de Sapinhoá in the 2nd pre-salt auction, in partnership with Petrobras and Shell, its partners in the Sapinhoá area.
The Ministry of Mines and Energy published on Thursday the resolution of the National Council of Energy Policy (CNPE) that establishes guidelines for the auction of surplus oil volume contracted with Petrobras in the Transfer of Rights assignment in the pre-salt layer of the Santos Basin . The resolution dictates the rules, but does not authorize the realization of the auction, which should happen in another CNPE meeting scheduled for this month. The auction is already scheduled for October 28.