ANP 6th Production Sharing Auction Raises R$ 5 Billion of the R$ 7.85 Billion Expected, with Only One Area Bid by Petrobras
The story repeated itself, Petrobras (in consortium with Chinese companies) was again the only one to submit a bid in an ANP auction. This happened yesterday and it happened again today in the 6th round of sharing.See how the auction went the previous day here!
The Brazilian oil company, in consortium with Chinese CNODC, like in yesterday’s onerous concession auction, won the most expensive block of the auction.
The block acquired by Petrobras (80%) with CNODC (20%) was Uram, in the Santos Basin, and was paid by the oil companies at the minimum offer of R$ 5.05 billion.
Thus, the other four blocks of the auction (Bumerangue, Cruzeiro do Sul, Sudoeste de Sagitário, and Norte de Brava) were not bid on and will be offered in the next opportunity, which according to the ANP should be next year.
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The revenue from today’s auction was also below expectations, reaching 64.3% of the total, and without major proposals from foreign oil companies, leading the ANP and government team to reconsider if the sharing regime is the ideal one and whether it may be the reason for the disinterest of foreign oil companies. The trend is that the concession model gains ground.
In the sharing model, the state owns the oil, the operator that wins the auction pays a fixed signing bonus for the contract and a percentage of excess oil from production (after deducting exploration costs and investments) from the minimum required in the notice.
Expectations
Décio Oddone, ANP’s Director-General, expressed disappointment and stated that “I am surprised, yes. I expected that there would be bids for those three areas (for which Petrobras expressed preferential rights),” he pointed out. “But that doesn’t detract from the overall success of the auctions we held this year. What has been contracted already ensures the resumption of the industry.”
Seventeen companies were qualified to participate in the auction, but none of them except for the Chinese who formed the consortium with Petrobras made bids, highlighting dissatisfaction with the Brazilian concession model.
In the negotiation for the Uram block, Petrobras offered the minimum percentage of excess oil for the area, which was 29.96%, and it is estimated that the asset will require investments of R$ 278 million.
Read also! Petrobras sells Liquigás for R$ 3.7 billion!

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