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Brazil Attracts 93% of Global Oil Auction Revenue

Written by Paulo Nogueira
Published on 04/11/2019 at 10:20
Brasil petróleo leião pré-sal
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The Resumption of Investments in the Oil Sector in Brazil Increases the Recovery of Rio’s Economy, the Largest National Producer, with the Attraction of Companies, Training Courses, and Job Creation.

Brazil’s revenue expectation in the 6th round of pre-salt and the mega-auction is US$ 38.5 billion, representing about R$ 153.6 billion, affirming the country as the main focus of investments from the largest oil companies in the world. According to data from British consulting firm Wood Mackenzie, the investment will account for 93% of all that companies spent on oil auctions worldwide in almost three years. With saturated pipelines, Petrobras studies using ships for the drainage of pre-salt gas.

The pre-salt areas will generate an additional R$ 92.7 billion for the government by 2028, considering only the Union’s share in oil sales.

In addition to the influx of resources, the resumption of investments in the oil sector in Brazil increases the prospects for the recovery of Rio’s economy, with the attraction of companies, training courses, and job creation.

The pre-salt already accounts for more than half of national production and helped Petrobras reach the mark of three million barrels per day. For the two auctions this week, nine areas will be offered, with 18 oil companies qualified, according to the National Petroleum Agency (ANP).

“Interest in the pre-salt worldwide occurs due to the quality of the assets and regulatory changes, which have made investment attractive. We will be one of the five largest producers by the end of the decade. The path is open for a new level. We expect investments of R$ 1.8 trillion and between 50 and 60 new platforms”, said Décio Oddone, director-general of ANP.

If all four areas are auctioned, the mega-auction scheduled for this Wednesday, November 6, is expected to generate the largest revenue in the history of the sector worldwide, with fixed bonus payments reaching R$ 106 billion.

In the 6th Round, the expected amount is R$ 7 billion, assuming all blocks are auctioned. Of the total, Petrobras (with partners) reported it will make bids for three areas, ensuring revenue of R$ 1.845 billion.

The sharing regime — created due to the discovery of the pre-salt — stipulates that oil companies share part of the oil produced with the Union after deducting the costs of its extraction.

In the auction, a minimum level to be shared with the Union is defined, and the one who offers the highest percentage wins. In the mega-auction, the minimum ranges from 18.15% to 27.88%, depending on the area.

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Paulo Nogueira

Eletrotécnica formado em umas das instituições de ensino técnico do país, o Instituto Federal Fluminense - IFF ( Antigo CEFET), atuei diversos anos na áreas de petróleo e gás offshore, energia e construção. Hoje com mais de 8 mil publicações em revistas e blogs online sobre o setor de energia, o foco é prover informações em tempo real do mercado de empregabilidade do Brasil, macro e micro economia e empreendedorismo. Para dúvidas, sugestões e correções, entre em contato no e-mail informe@en.clickpetroleoegas.com.br. Vale lembrar que não aceitamos currículos neste contato.

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