Focus on the “hot spot” – Santos Basin

April 24, 2019

Like the Temer government, the Bolsonaro government prioritizes supply of assets in the Campos and Santos basins

The Brazilian government will offer a total of 20 exploration blocks in the Santos Basin in the three bidding rounds scheduled for 2019. If the agenda is maintained, this will be the first in 12 years in which the basin will have the largest number of blocks offered by the country, 45% of the total and surpassing Campos, which had been the lead since 2017.

The last time Santos headed the annual list was in 2007, when the ANP put up 120 blocks in the basin or 38% of the blocks selected for the 9th round of the agency. Between 2008 and 2015, the governments of Luiz Inácio Lula da Silva and Dilma Rousseff of PT prioritized areas in basins such as Sergipe-Alagoas, Recôncavo, Potiguar, Foz do Amazonas and Pelotas.

Under the command of Michel Temer (2017-18) and now Jair Bolsonaro, Santos began to gain more space, bringing in almost three times its share in the block portfolio on offer between 2017 and 2019 and reaching 48 auctioned areas at the end of this year – one more than Campos in the period.

What will be offered in Santos

In the 16th round of concessions, there will be 11 blocks: SM-1006, SM-1008, SM-1494, SM-1496, SM-1500, SM-766, SM-881, SM-883, SM- 887, SM-889. The blocks are located in the north of the Santos Basin, outside the polygon of the Pre-salt and near the limit with the Campos Basin, in water depths between 2,500 m and 3 thousand m, totaling 8,495 km² of area.

According to the ANP, in these areas, favorable situations were identified for the accumulation of hydrocarbons in the Pre-salt, similar to the discoveries already made in the basin.

Aram, Bumerangue, Cruzeiro do Sul, Norte de Brava and Sudoeste de Sagitario – all in the central portion of Santos, with the exception of Bumerangue, which is south of the basin, will be offered in the 6th auction of production sharing.

Aram is located in a water depth of 1.8 thousand m, west of the block BM-S-8 and south-west of the North blocks of Carcará and Uirapuru, while Bumerangue is in a water depth of 2,3 thousand m .

Cruzeiro do Sul is located in a water depth of around 2.2 thousand m. The block is east of the Lula field and west of the BM-S-24 block, in which the discovery of the accumulation of Jupiter was discovered.

Sudoeste de Sagitario is in a water depth of 1,85 thousand meters, west of North Carcará and Uirapuru and southwest of block S-M-623, in which the Sagitario prospect was discovered.

Norte de Brava, on the other hand, is located in water depths between 200 m and 800 m, between the Marlim Leste, Marlim, Voador, Viola, Moréia and Albacora fields. The block presents extension of the Brava prospect.

Scheduled for October 28, the surplus auction will offer the areas of Sepia and Búzios – analogous to the homonymous fields that already produce in the pre-salt – and Atapu and Itapu, whose first oil is predicted for 2020 and 2023, respectively.

Historic Mark

With the auctions scheduled for this year, Brazil will exceed the 5 thousand exploratory blocks offered since 1999, being 2.962 thousand offshore and 2.040 thousand at land. The calculation covers the 16 rounds of concessions, seven of sharing (including excess of the Transfer of Rights) and four of marginal accumulations.

However, if disregarded the 284 blocks offered in the eighth round of bids, held in 2006 and canceled seven years later by the ANP, the count drops to 4.718 thousand areas put up for auction since the opening of the national oil sector.

Source: BE Petroleum

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