Money That Petrobras Raises From Signing Bonuses Will Be Used for Investments in New Oil Fields From the Auction
Petrobras will use the R$ 34.6 billion from the onerous cession signing bonus in the auction that will take place on November 6. The amount will be collected when the winners pay the bonuses for acquiring the auctioned fields.
Fourteen Companies Registered to Participate in the Auction of the Onerous Cession Surplus, they are: BP, Chevron, CNOOC, CNODC, Ecopetrol, Equinor, ExxonMobil, Petrogal, Petrobras, Petronas, QPI, Shell, Total, and Wintershall DEA.
Petrobras is entitled to receive R$ 34.6 billion due to the revision of the onerous cession contract, concerning the reimbursement of investments made in the fields.
As the fields showed to have more oil than contracted between Petrobras and the union, the surplus is being auctioned, but the state-owned company will receive its share in the form of bonuses paid by the oil companies.
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The Executive Director of Finance and Investor Relations of the company, Andrea Almeida, stated today (10/25) that Petrobras will invest the entire amount it is entitled to in new exploratory fields.
“The idea is that the R$ 34 billion we are going to receive regarding the amendment will be used in the auction [of the onerous cession itself]. We have other resources, coming from divestments and our own cash generation, which we are using to pay down debt”, said the executive.
The agreement that defined the amount to be received by Petrobras and the contract revision was approved by the Federal Court of Accounts (TCU) and the payment of the bonus passed Congressional approval.
Recall the Case
Petrobras paid R$ 74.8 billion to the Union for the right to explore 5 billion barrels of oil in the Santos Basin in 2010.
Later, the federal government found that the fields could yield an additional 6 billion to 15 billion barrels, and this surplus is what is being auctioned on November 6.
The mega auction of the onerous cession, as it became known, will follow the production sharing model and will auction the areas of Atapu, Búzios, Itapu, and Sépia.
Petrobras will bid for two of the fields, Búzios and Itapu, and even if it does not win the auction, it will be the operator of these blocks with a minimum participation of 30%.
The winners will have to pay a fixed signing bonus, and the winner is the one who offers the highest percentage of surplus oil after deducting exploration costs and investments.
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