Record Bids for Brazil’s 11th bidding Round for O&G Exploration
The 11th Bidding Round for Oil and Gas Exploration Blocks held yesterday by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) in Rio de Janeiro received a $1.4 billion in bids for exploration rights.
The 797.81% premium achieved over the auction’s starting price is also record-breaking, as is the forecast for investments to be made by the winning companies under the Minimum Exploration Program of $ 3.45 billion. In all, 100,300 km2 of the 155,800 km2 of exploration area offered for bids were successfully auctioned, with 39 companies from 12 countries participating in the auctions. Thirty bidders had winning bids, including 12 Brazilian and 18 foreign companies from Australia (1), Bermuda (1), Canada (4), Colombia (2), Spain (1), United States (2), France (1) Guernsey (1), Norway (1), Portugal (1) and the United Kingdom (3).
“With the completion of this round, we resume investment in the oil and gas sector in Brazil. The findings from the blocks auctioned are expected to contribute to the development of our supply chain and the elevation of the country’s future oil and gas production,” said Mr. Edison Lobão, Brazil’s Minister of Mines and Energy.
The general-director of the ANP, Ms. Magda Chambriard, pointed out the success of the auction, which was Brazil’s first for oil and gas rights offering in five years: “The amount raised was an absolute record in ANP bidding rounds. Investments of $3,5 billion are expected.”
The 142 blocks successfully auctioned are located in 11 States of Brazil covering 11 sedimentary basins: Barreirinhas, Ceará, Espírito Santo, Foz do Amazonas, Pará-Maranhão, Parnaíba, Pernambuco-Paraíba, Potiguar, Recôncavo, Sergipe-Alagoas and Tucano Sul. The biggest concession auctioned, with a winning bid of $ 172,9 million, was offered for block FZA-M-57 (Foz do Amazonas Basin) by Total E&P Brasil, a Brazilian operator with a 40 % stake in a consortium that also includes Petrobras (30%) and BP EOC (30 %).
The average percentage of nationally owned/produced technology and assets for the 11th Bidding Round was 62.32 % for the Exploration Phase and 75.96% for the Development Phase of the concession agreement.