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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“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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