Minister: Transfer of Rights surplus auction will avoid “loss” of US $ 7 bi / year

March 26, 2019

According to Bento Albuquerque, the country needs to take advantage of the window of opportunity to attract investment

The auction of the Transfer of Rights surplus, scheduled for October 28, will prevent Brazil from not attracting $ 7 billion in investments per year. The estimate was presented by Minister of Mines and Energy, Bento Albuquerque, during a hearing in the Senate Infrastructure Services Committee.

“If the auction does not happen this year, studies show us that we are going to have a loss of $ 7 billion a year (opportunity cost). The investor looks for opportunities and does not want to leave his money standing still, “emphasized Albuquerque.

The minister used as an example of potential competitor for financial resources the offshore discoveries of Guyana. For Albuquerque, the country cannot miss the window of opportunity to attract investors to the Brazilian pre-salt. With the unlocking of the Transfer of Rights assignment, the expectation is to double existing reserves, up to 24 billion barrels, and raise $ 1 trillion in the next 35 years.

According to estimates from industry experts, the Transfer of Rights auction can yield around R $ 100 billion for the Union.

Payment to Petrobras

Government and Petrobras negotiate agreement to define the final value that the oil company will receive for the review of the contract that gave Petrobras the right to explore six blocks in the pre-salt layer.

Senate leader Fernando Bezerra Coelho said last week that the two sides were approaching $ 9bn to the state.

The Transfer of Rights agreement was signed with Petrobras in 2010, giving the oil company the right to produce up to 5 billion boe in the Santos cluster. At the time, the company paid US $ 42.5 billion.

Source: BE Petroleum

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