BP cautious about the Transfer of Rights Surplus auction

July 30, 2019

BP Energy is taking a cautious approach to the Transfer of Rights Surplus auction. Speaking to analysts on Tuesday, CEO Robert Dudley said the company has not yet decided whether to try to bid for any of the four areas to be offered in November.

“[Assets] seem very expensive, and we will remain very disciplined within our capital structure. We are still discussing, of course, with Petrobras and analyzing the auction, but we will be very, very careful before we dive into it, ”said the executive.

The subscription bonuses defined for Buzios, Sepia, Atapu and Itapu are, respectively, R$ 68.194 billion, R$ 22.859 billion, R$ 13.742 billion and R$ 1.766 billion.

Since 2017, BP has acquired six blocks in Brazil, three as operator (C-M-755 and C-M-793 and Pau Brasil) and three as partner (Peroba, Central Cabo Frio Alto and Dois Irmãos). The assets are distributed across the Campos and Santos basins – all within or around the pre-salt polygon, where the Transfer of Rights assets are located.

Uncertainty aside, the fact is that the British company was not among the oil companies that made contributions in the public consultation promoted by the ANP on the draft contracts for the Transfer of Rights surplus. Only ExxonMobil, Shell, Petrogal, Total, CNOOC and Petrobras, which exercised preemptive rights for Buzios and Itapu, participated in the process.

The six companies have already acquired production sharing areas – a model adopted by the Brazilian government to auction off the surplus volume of the four fields of the Transfer of Rights. Petrobras has eight areas (all as operator), followed by Shell (six), Exxon (three), CNOOC (three), Petrogal (two) and Total (two).

The other oil companies that have already acquired blocks in sharing auctions are BP (four), Equinor (three), QPI Brasil (two), Chevron (two), as well as Repsol, Ecopetrol, CNODC and CNPC, with one each.

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