Brazil government raises R$ 8,915 billion with oil auction

Oct 10, 2019

With a premium of 322%, the result was a record in rounds under the concession regime.

RIO – The 16th Bidding Round, held on the morning of Thursday, 10, was marked by the presence of large oil companies.

The government raised R$ 8.915 billion in signing bonuses from 11 companies and consortia and ten winners. The bonus was a record in auctions under the concession regime. Goodwill premium stood at 322%. In all, 12 blocks from a total of 36 were auctioned in post-salt areas in five sedimentary basins.

The largest disbursement was paid by the consortium formed by Total, Petronas and QPI, R$ 4.029 billion. The presence of Malaysian oil company Petronas also surprised.

Petrobras has taken a single block – the CM-477, in the Campos Basin – in consortium with BP Energy. This area obtained the highest premium, 1,744%.

The Minister of Mines and Energy, Bento Albuquerque, celebrated the result. “The bonus is the largest of the concession regime and exceeded all our expectations. The funds will go to the National Treasury and will be applied within public policy, including in the area of ​​the environment,” he said.

Present at the event, ANP’s Director-General, Décio Oddone, said that he had even thought of postponing the 16th Round, fearing the lack of interest from the companies, before the other auctions that will be held.

Albuquerque said that unsold areas will be included in the ANP’s permanent offer – oil and gas areas that can be requested by companies outside the auctions. According to him, the idea is also to include in the Permanent Offer areas that are not sold in pre-salt auctions, under the production sharing regime.

“The next meeting of the CNPE (National Energy Policy Council) on November 18 should discuss the inclusion of the pre-salt in the Permanent Offer,” the minister told the post-auction press conference.

Albuquerque said the government does not yet have a definite position on Petrobras’ pre-emptive rights in all auctions under the sharing scheme, but that this will be discussed in a working group on the management of the sector’s bids in Brazil.

“We are going to create the bid enhancement program that aims to improve the bidding policy and maximize the amount collected by the Union, this will be submitted to the CNPE and will have the participation of all,” explained the minister.

No oil company showed interest in the Camamu-Almada and Jacuípe basin blocks, whose concessions were being challenged in the Federal Court of Bahia by the Federal Prosecutor.

The areas are close to Abrolhos Marine Park. And, according to the MPF, environmental feasibility studies carried out in the area were not sufficient to avert the risks of exploratory activity.

Similarly, there was no interest in the Pernambuco-Paraíba basin. But in this case, the environmental issue was not the reason for the result.

Source: Estadão |

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.