Pré-Sal Petróleo (PPSA) Will Hold Auctions for Sales of Natural Gas Produced in the Union’s Pre-Salt Fields

Aiming Not to Limit Companies’ Focus to Oil, PPSA Will Hold Auctions in the Second Half of the Year to Encourage Sales of Natural Gas Produced in the Union’s Pre-Salt Fields as a Way to Attract Investors to the Sector

The Pre-Salt Oil Company (PPSA) will hold some auctions for sales of natural gas that is produced in the Union’s pre-salt fields, according to an announcement made last Thursday (05/05). Thus, the company aims to attract attention to this commercialization and encourage investments not only in the oil sector of these fields but also in gas, a resource that is currently in high demand in the international market. 

Initial Processes for Auction Project Aimed at Attracting Sales for Natural Gas Produced in the Union’s Pre-Salt Fields Are Already Under Development

In a meeting held last Thursday, PPSA confirmed that several auctions will be held during the year 2022 to seek sales for the natural gas produced in the Union’s pre-salt fields. This is the company’s new bet to energize the oil and gas industry and shift investors’ perception that only oil can be a beneficial long-term investment for these companies. 

Thus, PPSA is already in the initial steps of this initiative and is conducting informal consultations with oil companies potentially interested in the Union’s natural gas to understand the main demands and shape its commercial strategy. According to the company itself, it aims to attract investors to natural gas sales through auctions to stimulate competitiveness among companies. In addition, PPSA expects that these sales meetings can be held in the second half of this year. 

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For the first phase of the auctions held throughout the year 2022, PPSA hopes to sell natural gas from the Surrounding Areas of Sapinhoá, Búzios, and the Shared Reservoir of Tupi, areas that already have pipelines connecting the fields to the coast. This is extremely important for the development of this commercialization as PPSA intends to sell directly at the “wellhead” to make logistics much faster, more efficient, and productive for both parties involved in the agreements. 

Pre-Salt Oil Company (PPSA) Expects to Sell Up to 200,000 Cubic Meters of Natural Gas Per Day During 2023 and Double the Forecast for 2022

The plan for selling natural gas produced in the Union’s pre-salt fields is just starting, and the auction schedule will further intensify this initiative. Thus, for the year 2022, PPSA expects to market about 100,000 cubic meters per day of the resource, and in 2023, it intends to double that figure and sell more than 200,000 cubic meters per day of gas. And while these may not seem like absurd numbers at first, the company expects to continue expanding the production and marketing of the resource. 

Despite PPSA’s grand plan for 2022, Rivaldo Moreira, CEO of the Gas Energy consultancy, commented that there are still many open questions and the company needs more time to organize the auctions: “The issue here is neither the infrastructure to process nor transport this gas. The doubt is whether PPSA will hold an auction only for companies that already have negotiated access with Petrobras not only in the pipeline but also in UPGNs or if it will open it to other companies. Then, they would have to negotiate access conditions.”

Now, what the oil and gas companies are waiting for is a formal announcement made by PPSA regarding the criteria and requirements that will be taken into account for participation in the natural gas sales auctions from the pre-salt.