Petrobras’s Appetite for Two Pre-Salt Areas is Fueled by the Cessão Onerosa Mega Auction, and Its President Expresses Optimism
Petrobras asserted its right to express interest in the purchase of two areas in the pre-salt of the Santos Basin and stated early today (10/29) that the company “will enter to win.” Last week, the company declared that it will use the bonus from the onerous concession to purchase other wells in the same auction.
The statement came from Petrobras’s president, Roberto Castello Branco, who made sure to express all his enthusiasm about the mega auction that could yield R$ 106 billion just in signing bonuses for the union.
The areas that Petrobras will attempt to acquire are the assets of Búzios and Atapu, and the president of the state-owned company stated that the Búzios field is the “largest deposit ever discovered” in the Brazilian pre-salt.
Castello Branco also mentioned that currently, due to the company’s financial situation, all projects have their economic viability evaluated and end up competing with each other to become effective or not.
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Civil Defense issued a storm alert with risk of flooding in Santa Catarina, and intense rain may hit the state between Tuesday and Wednesday with wind gusts and hail.
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Surrounded by the Atlantic and the Amazon estuary, Marajó Island is losing land to the sea at a rate recorded by satellite, while saltwater is already invading the wells that supply riverside communities, and the process is advancing without any national adaptation plan addressing the most vulnerable inhabited archipelago in Brazil.
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South of Mato Grosso do Sul, southern São Paulo, Sul de Minas, and the Mantiqueira Mountains enter the most critical cold zone, with above-normal heat before the polar air mass, a sharp drop in temperatures during the early mornings, and an increasing risk for crops, vegetables, coffee, and low-lying areas.
“Given that capital is scarce, projects have to compete with each other for capital. Only the more meritorious projects at risk and return are approved,” explained the president.
Given the enormity and complexity of the onerous concession mega auction, Castello Branco referred to the event as a “monstrum” and classified it as “another jabuticaba.”
The Mega Auction
The mega auction will take place next week, on November 6, and will auction four oil fields in the Campos Basin, Atapu, Búzios, Itapu, and Sépia.
The onerous concession agreement was signed in 2010, where Petrobras and the Union agreed that Petrobras would pay for the right to explore 5 billion barrels from the pre-salt in the Santos Basin.
Since the excess contractually belonged to Petrobras, an agreement with the union was necessary, as such a sale was not foreseen in the contract (the oil reserves turned out to be much higher than anticipated).
14 companies registered for the auction of the excess from the onerous concession, they are: BP, Chevron, CNOOC, CNODC, Ecopetrol, Equinor, ExxonMobil, Petrogal, Petrobras, Petronas, QPI, Shell, Total, and Wintershall DEA.

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