New oil auctions will generate demand from 60 platforms, says ANP’s Décio Oddone

October 30, 2019

The new oil auctions to be held by the National Petroleum, Natural Gas and Biofuels Agency (ANP) should generate demand for the installation of 50 to 60 new offshore platforms. The information was highlighted by the director general of the agency, Décio Oddone, during breakfast at OTC Brasil 2019.

“All of this should generate investments of around R$ 300 or R$ 400 billion. It’s transformative for the industry as a whole, ”he said to an audience of industry executives.

Demand is relative to recent and scheduled rounds for 2019 and 2020, including the Transfer of Rights Surplus and the 6th pre-salt round scheduled for November.

Oddone stated that the ANP resolution, which will define rules for the decommissioning of fields and platforms, should be published shortly.

The move, along with reserve based lending and royalty reduction for incremental production of mature fields, will unlock, in Décio Oddone’s assessment, land and shallow water activities in Brazil.

Reserve based lending is a project financing modality that takes companies’ oil and gas reserves into account when calculating collateral and investment risk. Measure was regulated by the ANP this year.

The ANP director-general also highlighted the revitalization of the Campos Basin’s mature fields and the ANP’s decision to give Petrobras a deadline to define what will do with 250 shallow water fields in the Northeast. “We will see this industry reborn. We are after decades seeing the replacement of a monopoly by an industry, ”he said.

Source: epbr