Petrobras is interested in two pre-salt areas in October auctions

Petrobras said on Tuesday that it is interested in exercising its preferential right to bid on two areas in an auction of excess oil from the so-called "transfer of rights" (TOR) area, according to the company's document.

The Brazilian state-owned company said it was interested in the Búzios and Itapu areas, based on a 30% stake with a chance to increase stakes on auction day, which is expected in October. The auction could result in a signing bonus of nearly 21 billion reais (5,20 billion dollars) and will take place on 28 October. Petrobras said it could participate in auctions in two other areas, but on the same terms available to other potential bidders.

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The news of Petrobras' desire to enter the auction brings clarity to a long-awaited auction that is likely to attract some of the world's biggest energy companies and which the government says could raise around 100 billion reais ($26 billion) .

Petrobras has settled a long-running dispute over the TOR area, a roughly 2.800-square-kilometer zone off the coast of southeastern Brazil where billions of barrels of oil are trapped under a layer of salt under the ocean. floor.

Under the terms of the deal, Brazil's government will pay Petrobras $9,058 billion, paving the way for the auction, which grants access to prized assets in an oil-producing zone known as the pre-salt. The area has emerged as one of the most promising conventional oil plays in the world.

Petrobras and the government are still discussing how the auction winners are likely to partner with the state-owned oil company, which is already producing in Búzios and has the right of first refusal to remain operator in the four fields.

Regardless of the final agreement, the auction winners will be required to compensate Petrobras for the infrastructure and exploratory work in which the company has already invested.

Companies with exploration and production assets adjacent to or relatively close to the TOR area that offer potential cost savings include Total SA, Royal Dutch Shell PLC and China's CNOOC Ltd and CNPC.

Source: Reuters