Exploratory Block S-M-857 Auctioned by Eni in 2006 Will Be Auctioned by ANP

ANP Will Auction Area In The Pre-Salt Acquired By Eni From The Suspended Auction In 2006. The Area Is Part Of The Aram Exploitative Block, Scheduled For The 6th Pre-Salt Auction In 2019

Many years have passed and the National Agency of Petroleum (ANP) will auction in 2019 the exploratory block S-M-857, in deep waters of the Santos Basin, acquired by Eni. The area is part of the Aram exploratory block, scheduled for the 6th pre-salt auction next year. After being suspended in 2006 by the government following the discovery of Tupi, Eni had hopes of regaining a concession in the Santos Basin, acquired in the 8th Bidding Round of the ANP, being the only reference to its future in the country. Later, Eni spread gas stations across the country and tried to acquire a “Brazilian face.” Starting in 2004, it gradually divested its assets until only an office remained in Rio, waiting for opportunities in the pre-salt.

In the first auction of the National Agency of Petroleum (ANP), before Petrobras and the Lula government announced the official discovery of the pre-salt, the multinational oil company Eni, in competition with large companies such as Petrobras, the consortium Norsk Hydro, Repsol, and Shell, made the highest bid for an exploratory block with gas potential in the Santos Basin, in a bidding process by the ANP worth R$ 307.3 million.

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At the time, a court injunction obtained in the Federal Court by then federal deputy Clair da Flora Martins (PT/PR) ended up suspending the bidding in the middle of the first day surrounding a decision by the ANP board, to prevent the concentration of areas. Of course, there was discontent with the decision to fragment the number of operators, mainly on the part of Petrobras at the time, feeling that the company would be harmed in the competition.

Being determined in December 2012 by the National Council of Energy Policy (CNPE) that the ANP should take the necessary legal measures for the effective cancellation of the bidding, the ANP board formalized the cancellation of the round in February 2013, determining the refund of all participation fees and bid guarantees to the participants.

In defense that it had been the winner of the bidding for the concession of S-M-857, Eni filed a lawsuit against the Union and the ANP with the aim of invalidating the CNPE Resolution. The termination of the pendency of the 8th round, which had dragged on for almost eight years, was revoked in July 2014 by the courts. The decision released the areas to be re-auctioned under the production sharing regime.

In November 2007, after a meeting of the National Council of Energy Policy (CNPE) held at Petrobras headquarters, then Minister of Mines and Energy, Dilma Rousseff, announced the discovery of the pre-salt and the withdrawal of 41 exploratory blocks from the auction in the Campos, Santos, and Espírito Santo basins. Even with the uncertainty of its fate, Eni, which would have the block acquired in the 8th round, re-registered for the 9th round of the ANP. After this incident, Eni never returned to an ANP auction.

The interesting thing is that all its operations were acquired precisely by Petrobras; the network of gas stations, the gas distributor Liquigás, and now, GasBrasiliano. The state company could also take the exploratory block from the 8th Round. Unlike Eni, Petrobras significantly expanded its wings during this period. Learn more, with Castello Branco Petrobras Will Focus On Its Core Activity!