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Foreign Companies Acquire Most Blocks Offered in the 5th and Final Round of Oil Auctions

Written by Paulo Nogueira
Published on 28/09/2018 at 10:53
Updated on 28/09/2018 at 10:57
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Shell, Chevron, ExxonMobil, BP Energy, Ecopetrol, CNOOC Petroleum, Petrobras, and QPI Jointly Acquired 4 Blocks in the Pre-Salt of the Santos and Campos Basins

Today in Rio, the last round of 2018 for the pre-salt block auctions by ANP took place. Four blocks for production and exploration were offered, 3 in the Santos Basin and 1 in the Campos Basin, the government raised 6.8 billion reais at contract closing and, in the long term (royalties and taxes), up to 180 billion. The estimate is the generation of 400 thousand new jobs in the next 10 years. Here are the oil companies that raised funds and their percentages in each block:

[one_half]

Saturn Block

Winner: Shell Consortium (50%) and Chevron (50%)
Oil Surplus Offered: 70.20%
Premium: 300.23%

Titan Block

Winner: ExxonMobil Consortium (64%) and QPI (36%)
Oil Surplus Offered: 23.49%
Premium: 146.48%

[/one_half]

Pau Brasil Block

Winner: BP Energy Consortium (50%), Ecopetrol (20%), CNOOC Petroleum (20%)
Oil Surplus Offered: 63.79%
Premium: 157.01%

Southwest Green Turtle Block

Winner: Petrobras
Oil Surplus Offered: 10.01%
Premium: 0

The week has already started with the highest barrel price in the last 4 years (US$ 81.87 brent) and it is expected that the price will continue to rise. Venezuela, for example, has reduced its production due to the crisis (from 3 million barrels/day to 1 million by next year) and Iran is suffering political retaliation from the U.S. government. All of this combines to create a competitive scenario for Brazilian pre-salt and positive expectations for the auctions.

Watch the Live Broadcast of the 5th Bidding Round Below

YouTube video

For experts, such as the president of the Brazilian Institute of Petroleum, José Firmo, even our current political uncertainty does not hinder foreign interest in our oil. “Brazil has always respected contract rules in the industry, regardless of the group in government,” he states. Twelve oil companies entered the competition, including Petrobras, which chose to bid on one of the blocks.

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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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