(PN) The Permanent Offer is once and for all consolidated as the main form of bidding for oil and gas areas in Brazil. The Brazilian government authorized the National Petroleum Agency (ANP) to sell 11 pre-salt exploratory blocks within this auction model. The decision was published in an order in the Official Gazette of the Union signed by the Minister of Mines and Energy, Bento Albuquerque.
As they are areas within the pre-salt polygon, the offer will take place under the production sharing regime, as determined by current legislation. The list of blocks that were included in the Permanent Offer is formed by: Esmeralda, Agua Marinha, Agata, Bumerangue, Cruzeiro do Sul, Norte de Brava, Sudoeste de Sagitario, Itaimbezinho, Tourmalina, Jade and Tupinamba.
Petrobras will have preemptive rights in these blocks, and may express an interest in being the operator of the areas. The company will have a period of up to 30 days, starting today, to announce its decision. The order published by the government also determined the minimum percentages of excess oil for the Union and the signing bonuses for bidding on each area. As a reminder, in auctions for sharing areas, the company that offers the highest percentage of profit oil delivery to the Union wins.
See below the values for excess oil and signing bonus defined by the government:
– Esmeralda (10.54% and BRL 33.736 million)
– Agata (12.58% and BRL 61.813 million)
– Agua Marinha (13.23% and R$ 65.443 million)
– Bumerangue (5.66% and BRL 8.861 million)
– Cruzeiro do Sul (14.13% and R$ 134.035 million)
– Norte de Brava (22.71% and R$511.692 million)
– Sudoeste de Sagitario (21.30% and R$330.256 million)
– Itaimbezinho (11.67% and R$15.641 million)
– Turmalina ( 6.87% and R$9.833 million)
– Jade (10.98% and R$104.730 million)
– Tupinamba ( 4.88% and R$7.047 million)
The Tupinamba block was defined as a strategic area, which, according to the Sharing regime, has a low exploratory risk and a high potential for oil and natural gas production. As a result, Petrobras may be directly contracted to carry out exploratory studies.
The portion of the signing bonus allocated to Empresa Brasileira de Administração de Petróleo e Gás Natural SA – Pré-Sal Petróleo SA – PPSA will be proportional to the value of the signing bonus of each block auctioned, considering the maximum total amount of R$ 53,800 0,000.00 (fifty-three million, eight hundred thousand reais) if all blocks are sold.
Brazil Energy Insight 
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