Governo prepara leilão do petróleo na Amazônia Azul

Government Prepares Oil Auction in Blue Amazon

Written by Paulo Nogueira

Published on 21/10/2019 at 15:05

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Six Blocks Will Be Offered in 2020; Known as Blue Amazon, the New Frontier for Oil Exploration Has an Area the Size of Uruguay.

On Friday, the National Energy Policy Council (CNPE) decided to offer exploratory oil blocks off the coast in the 17th Bidding Round in 2020. Speaking of pre-salt, on Monday, October 21, the Colombian Ecopetrol Announced the Purchase of 30% of Gato do Mato from Shell.

“Currently, the main focus is the area near the pre-salt, where, if discoveries are confirmed, there are expectations of increasing Brazil’s oil and gas reserves by about 50%, which are currently estimated at 15.9 billion barrels,” announced the Ministry of Mines and Energy.

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Experts and government officials have referred to this area as the Blue Amazon because they found evidence of reserves not only of oil but also of other minerals, such as cobalt and manganese.

This coastal strip of Blue Amazon is as rich as the pre-salt, whose reservoirs discovered in the last decade already account for 57% of Brazil’s oil production.

The limit of 350 nautical miles is the new benchmark that Brazil has claimed for its legal continental shelf to the UN since 2004, aiming to expand its exploration of mineral wealth at sea. Fifteen years later, Brazil had its first victory a month ago: the UN published in June on its website the expansion of the continental shelf limits from 200 to 300 miles in the Southern Region.

This recognition already corresponds to an increase of 170 thousand square kilometers — equivalent to the territory of Uruguay — in the area that can be economically explored by Brazil.

A favorable point for attracting oil companies to explore this new frontier is the fact that, because they are not located in the so-called pre-salt polygon — where the legislation requires the bidding of blocks under a production-sharing regime between the operator and the Union —, the nearby blocks located beyond 200 miles can be auctioned under a concession regime, in conventional ANP rounds, which will take place next year.

This modality is more attractive to oil companies, which take on the risk of exploration on their own. In total, the 17th Round will offer 128 blocks in the sedimentary maritime basins of Pará-Maranhão, Potiguar, Campos, Santos, and Pelotas, totaling 64.1 thousand square kilometers of area.

Government Prepares Oil Auction in Blue Amazon

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Government Prepares Oil Auction in Blue Amazon

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The Blood Falls of Antarctica hide a living ecosystem trapped under the ice for over 2 million years, where microbes survive without light, without oxygen, and without ever having seen the Sun.

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