Brazil auctions for oil exploration areas in 2020

Mar 18, 2020

It is premature to discuss the postponement of auctions for oil exploration areas in 2020, defended the president of IBP, Clarissa Lins, in an interview with Estadão. The current planning is to carry out this year, the 17th concession round and the 7th pre-salt sharing auction.

– “At the moment, the most prudent thing to do is to wait for the unfolding of the crisis and its reflexes on market conditions”.

– The executive points out that in the 2014 crisis, when oil prices fell to the level of US $ 30, the industry underwent a period of cost adjustments and increased efficiency. And that the current crisis tends to be fleeting, while investment decisions are long-term.

– “It is expected that the combination of demand reduction – due to the coronavirus – with excess supply in the face of the lack of understanding between Russia and Saudi Arabia will be temporary and that prices will recover as the moment  the crisis passes “, she says.

Brent futures contracts closed at $ 28.73 on Tuesday (17), down 4.39% and opened lower on Wednesday (18), reaching $ 27.31.

– Saudi state-owned Saudi Aramco said on Wednesday (18) that it will continue to produce more than 12 million barrels / day “in the coming months”, flooding the global market with 10 million barrels / day. Saudi Arabia’s strategy to take more control of the international market, in the midst of the crisis.

Source: epbr

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