British BP Energy was left with area in the Santos Basin and was the only winner of the 2nd cycle of the Permanent Offer under the sharing regime
The auction for oil and natural gas exploration areas in the pre-salt ended with only 1 of the 5 blocks offered being sold. The winner was the British BP Energy, which won the bid for the Tupinambá block, in the Santos basin. The grant to the government will be R$7 million.
The oil company won with an offer of 6.5% surplus oil, a premium of 33% above the minimum required. Under the sharing regime, valid only for the pre-salt, companies need to share part of their oil production with the government. These barrels are delivered to the state-owned company PPSA (Pré Sal Petróleo SA) for commercialization.
The Tupinambá block will receive R$360 million in investments. As this is an exploration area, research will still be necessary to confirm reserves and assess production feasibility.
The 2nd Cycle of the Permanent Share Share Offer ANP (National Petroleum, Natural Gas and Biofuels Agency) had 6 companies registered, all multinationals. In addition to BP, oil companies could bid Chevron, QatarEnergy, Petronas, Shell It is TotalEnergies.
The most valuable blocks in the auction remained without bids. Are they:
- Southern Cross (Santos basin) – bonus was R$134 million;
- Emerald (Santos basin) – bonus was R$33.7 million;
- Jade (Santos basin) – bonus was R$104.7 million;
- Tourmaline (Campos basin) – bonus was R$9.8 million.
The public proposal presentation session was held this Wednesday afternoon (13.Apr.2023) in Rio de Janeiro, after the conclusion of the 4th Cycle of the Permanent Concession Offer, which brought together maritime blocks outside the pre-salt and on land .
Concession
The concession auction raised R$422 million. Of the more than 600 areas on offer, 192 were auctioned, including 143 exploratory blocks on land and 48 at sea (post-salt), in addition to a marginal accumulation area on land (inactive field).
The auction recorded an average premium of 180% above the minimum bids, which exceeded 400% in some sectors. The investments foreseen in the concessions reach R$2 billion for exploratory research.
The bids involved areas of 9 sedimentary basins: Amazonas, Espírito Santo, Paraná, Pelotas, Potiguar, Recôncavo, Santos, Sergipe-Alagoas and Tucano.
In total, 16 companies won the auction. Whoever offered the highest grant value to the government won. In general, the big oil companies were left with maritime areas. Are they: Petrobras, Shell, Cnooc Petroleum, Chevron, Equinor It is Karoon.
The highlight of the auction was the Pelotas basin, which brings together maritime exploration blocks in southern Brazil. In the region alone, 44 blocks were sold in 6 sectors, totaling R$298 million in grants – equivalent to 70% of the total collected in the cycle.
In the terrestrial environment, which had the largest volume of auctioned areas, the premiums were lower. Most blocks had a minimum bid of R$50,000 and many were sold for R$51,000. The segment was contested by small and medium-sized companies purchasing land areas. The big winner in the segment was Elysian.
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