Brazil Raises About 2 Billion Dollars in Pre-Salt Oil and Gas Auction

According to calculations by the National Petroleum Agency (ANP), the winners of the auction will need to invest R$ 204 billion to develop production in the Atapu and Sépia oil and gas fields

Brazil raised R$ 11.14 billion in the last oil auction of the year, which took place last Friday (17), in which two consortia received the two offered blocks, and where the big winners were the Brazilian oil giant Petrobras and French Total Energies.

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The consortium formed by Total, Malaysian Petronas, Qatari QP, and Petrobras received the Sépia block, while the consortium formed by Petrobras, Shell, and Total obtained Atapu.

Sépia and Atapu, located in the Santos marine basin off the coast of São Paulo and Rio de Janeiro states, already have proven reserves in pre-sale, the coveted exploration horizon that Brazil discovered in very deep waters of the Atlantic Ocean beneath a two-kilometer-thick salt layer.

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The Federal Government’s Expectation is About R$ 200 Billion in Investments by the End of the Contract Period

According to the proposal rules, the criteria for awarding the blocks were granted to the largest offer of exploration rights for the excess volumes, with a minimum set at 5.89% of the excess from the Atapu field and 15.02% from the Sépia field.

For Sépia, the winning group offered 37.43% of its total production to the State, while the winning consortium of Atapu proposed 31.68%, in addition to a fixed amount for operating licenses.

The companies will pay R$ 7.130 million (about US$ 1.28 billion) and R$ 4 billion (about US$ 718 million) for the Atapu license (approximately R$ 718 million).

This represented a value 149.20% higher for the Sépia block compared to the minimum set, and 437.86% for the Atapu block.

For the Sépia block, Petrobras initially participated individually in the dispute, but its offer of 30% was lower than that offered by the Total, Petronas, and QP group.

Having the right of preference for discovering this block (and also Atapu), Petrobras had the option to join the winning group, which it did.

Petrobras Will Have a 30% Stake in the Sépia Block and 52.5% in Atapu

For the Sépia block, Petrobras will have a 30% stake in the consortium, followed by Total with 28%. Petronas and QP, each with 21%.

For the Atapu group, Petrobras will hold 52.50% of the area, Shell 25%, and Total 22.50%.

Therefore, the big winners of the day were Petrobras and Total, with stakes in both auctioned blocks.

For this Friday’s bidding, 11 oil companies registered, including several multinationals such as ExxonMobil and Chevron.

According to calculations by the National Petroleum Agency (ANP, the regulator), the winners of the auction will need to invest R$ 204 billion (about US$ 36.428,6 million) to develop production in both areas.