July 30, 2019
The ANP sees no reason for the 2019 bidding calendar to be revised, regulator Felipe Kury director said Tuesday during the 6th round of sharing and 16th round of concessions technical seminars. The statement was made in reference to questions from the Federal Court of Account (TCU) about this year’s auction schedule.
“TCU is doing the work he has to do. In all rounds, we exchange a lot of information, a work that also gives robustness to the process. (…) I see no conflict at this time, ”said the executive.
TCU fears that the three rounds, which are scheduled for October and November, will compete with each other, negatively impacting the final result of the bids. The final position of the court has not yet been given, but the indication is that the body tends to determine the revision of the schedule.
Kury pointed out that there is no way to auction the magnitude of those scheduled for this year without TCU actively participating in the process. For him, the sequential execution of the rounds allows companies that are not successful in one of them can compete for new areas in the others.
Sources consulted by Petroleum Today during the agency’s technical seminar stated that any rule or condition changes on the eve of the proceedings is bad and creates uncertainty. If TCU maintains its position, the natural tendency is for the 16th round to be relocated to 2020. The Transfer of Rights Surplus auction is seen as a priority by the ANP.
Kury stressed that the three bids and the auction calendar ensure an “incredible moment” for Brazil and that the ANP is in favor of accelerating the rounds. “We have a window of opportunity, and Brazil needs to run. (…) The matrix is changing and companies are looking for cleaner alternatives, ”said the executive.
The technical seminars attracted medium and large domestic and foreign oil companies such as ExxonMobil, Shell, Equinor, Chevron, BP, Equinor, Enauta, Repsol, Ecopetrol, Murphy, Wintershall, Inpex, Rosneft, Petrogal, Petrobras, CNODC and Total.
Aram in the spotlight
As for the 6th round, the big bet is on the Aram block in the Santos Basin, where Petrobras exercised preemptive rights, along with Norte de Brava and Sudoeste de Sagitario. The ANP predicts that exploratory work in the area may confirm the discovery of the third largest field in the country, behind only Buzios – which will surpass Sapinhoá – and Lula. The area has the biggest bonus of the auction, set at R $ 5.05 billion.
Along with Aram, Norte de Brava and Sudoeste de Sagitario, the 6th round will also offer the Bumerange and Cruzeiro do Sul areas. According to the ANP’s assessment, the five areas have the potential for an undiscovered 42 billion boe in place oil volume and can guarantee investments of R $ 1.3 billion in the exploration phase.
The 6th round notice will be published in September. The ANP already foresees that Cruzeiro do sul, Norte de Brava and Sudoeste de Sagitario will advance on other discoveries, demanding unitization processes.
The announcement of the 16th round will be published August 5. The new auction of concessions will offer 36 blocks, distributed by the Campos, Camamu-Almada, Jacuípe, Pernambuco-Paraíba and Santos basins, totaling an area of 30 thousand km².
The potential of the 36 blocks to be offered points, according to the agency, to an untapped oil volume in place of 70 billion boe. Among the highlights is the C-M-541 block, located in the Campos Basin. The projected investment for the exploration phase is around R $ 790 million.
The Transfer of Rights Surplus auction will offer the areas of Buzios, Atapu, Itapu and Sepia.
The signing bonuses of the three auctions total R $ 117 billion.
Source: BE Petroleo