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Brazil attracts 93% of global income from oil rounds

Written by Paulo Nogueira
Published 04/11/2019 às 10:20

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Brazil pre-salt auction oil

The resumption of investments in the oil sector in Brazil, increases the recovery of the economy of Rio, the largest national producer, with the attraction of companies, training courses and job creation.

Brazil's expected revenue in the 6th pre-salt round and in the mega auction is US$ 38,5 billion, representing approximately R$ 153,6 billion, confirming the country as the main focus of investments by the largest oil companies in the world. According to data from the British consultancy Wood Mackenzie, the investment will represent 93% of all that companies have spent in oil auctions around the world in almost three years. With saturated gas pipelines, Petrobras is studying the use of ships to transport pre-salt gas.

The pre-salt areas will generate another R$92,7 billion for the government by 2028, considering only the Union's share in oil sales.

In addition to the inflow of resources, the resumption of investments in the oil sector in Brazil, increases the prospects for recovery of the economy in Rio, 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 to hit the mark of three million barrels a day. For the two auctions this week, nine areas will be offered, there are 18 qualified oil companies, according to the National Petroleum Agency (ANP).

“The interest in the pre-salt around the world is due to the quality of the assets and regulatory changes, which made the investment attractive. We will be one of the top five producers by the end of the decade. The way to a new level is open. We expect investments of BRL 1,8 trillion and between 50 and 60 new platforms”, said Décio Oddone, general director of PNA.

If all four areas are auctioned, in the mega auction scheduled for this Wednesday, November 6, it should generate the largest collection in the history of the sector worldwide, the fixed bonus payment will reach R$ 106 billion.

In the 6th Round, the expected value is R$ 7 billion, if all the blocks are sold. Of the total, Petrobras (with partners) informed that it will make offers for three areas, guaranteeing collection of R$ 1,845 billion.

The sharing regime — created because of the pre-salt discovery — determines that the oil companies share with the Union part of the oil produced after deducting the expenses with its extraction.

In the auction, a minimum level is defined to be shared with the Union, and whoever offers the highest percentage wins. In the mega auction, the minimum goes from 18,15% to 27,88%, depending on the area.

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Paulo Nogueira

An electrical engineer graduated from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), I worked for several years in the areas of offshore oil and gas, energy and construction. Today, with over 8 publications in magazines and online blogs about the energy sector, my focus is to provide real-time information on the Brazilian employment market, macro and micro economics and entrepreneurship. For questions, suggestions and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes for this purpose.

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