Permanent Offer bid yields R$ 22.3 million to ANP in its 1st auction

September 11, 2019

The National Petroleum Agency (ANP) has tendered 45 assets, including exploratory blocks and inactive areas with marginal accumulations, in the first test of the permanent offer – new auction model, conceived by the regulator as a kind of on demand bidding of areas of oil and gas. The round raised R$ 22.3 million in signing bonuses and promises to move investments of at least R$ 320 million.

The number of areas traded accounts for about 15% of the 287 assets placed for bidding. ANP’s Director-General, Décio Oddone, minimized the low collection of the auction and celebrated the result of the auction, highlighting the contribution to boost exploration activities, especially onshore.

According to him, the 33 blocks offered by the agency increase by 11% the number of exploration contracts in force today in the country. In addition to these assets, 12 other inactive areas were negotiated, which should receive investments to recover production.

“We do not seek in these cases the signing bonus. The idea is to facilitate investment. This activity is what will generate royalties, revenue and employment. The number of contracts is significant for what we have in these areas,” said Oddone.

Permanent supply is a mechanism whereby the regulatory body makes available permanently a package of assets for purchase on demand. These are low productivity fields, returned to the Union by former concession holders, or blocks not sold in previous auctions.

Through the new mechanism, assets are available for companies, at any time, to express their interest in acquiring the offered areas. If confirmed, the ANP then calls a public bidding session, so that other companies can compete for the areas.

In all, 18 companies emerged victorious in the first cycle of the permanent offering, held yesterday. The main investor was the consortium formed by ExxonMobil (50%), Enauta (30%) and Murphy (20%), which paid R $ 7.9 million for three new ultra-deepwater exploration concessions in the Sergipe-Alagoas Basin. Thus, the three companies strengthen their presence in the region, where they have six other assets.

Eneva, owner of the Parnaíba thermoelectric complex in Maranhão, strengthened its position in the region and bought six more blocks in the Parnaíba Basin.

The main highlight among the small oil companies was the American Petro-Victory, which bought 16 concessions. Phoenix, Imetame, Geopark, Petroil, Oil Group, Creative Energy, Great Energy, Brasil Refinarias, Guindastes Locações, Petromais Global, Eagle, Perícia Engenharia e Andorinha Petróleo complete the list of winning companies.

Oddone said that “another good news” from the first cycle of permanent supply was the geographical diversification of the contracted areas. The ANP auctioned assets in the Sergipe-Alagoas (sea and land), Potiguar, Parnaíba, Recôncavo and Espírito Santo (land) basins. “The Northeast was the big winner in attracting investments,” he said.

The director also highlighted the “symbolism” of the absence of Pe trobras at the auction, precisely at a time when the oil and gas market is going through an opening.

Oddone promised to increase the size of the offer of assets available for purchase. The universe of areas available in the permanent offer today is 600 blocks and the intention of the ANP is to have about 2,000 areas available to oil companies. The director hopes that in the future the new model will also offer areas within the pre-salt polygon. The idea is to make available to the market exploratory blocks located near mature post-salt fields.

“Petrobras is selling a number of these areas [mature, shallow water]. Thus, companies that acquire the assets of Petrobras will gradually begin to be interested in areas around these assets,” he explained. According to Oddone, the idea is that the matter is dealt with by a resolution of the National Council of Energy Policy (CNPE).

Source: Valor |

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