Shell justifies the absence of offers due to high prices in the blocks offered in the mega auction of the transfer of rights, last Wednesday (06/11)

The CEO of Shell in Brazil, André Araujo, linked the company's lack of proposals to the blocks tendered in the onerous assignment bidding round to the high bonus requested by the union for signing the contracts.
According to the CEO, “the blocks in the transfer of rights auction were expensive”, he declared in an interview with several newspaper and TV journalists.
As the click Petróleo e gas published last Wednesday (06/11), the auction of surplus oil from the onerous assignment ended with Petrobras and the Chinese bidding off two areas in the pre-salt surplus mega-auction.

Despite this statement, the CEO of Shell in Brazil considered Wednesday's auction a success. The Búzios field was purchased by Petrobras in partnership with the Chinese from CNODC and CNOOC and Itapu was purchased in its entirety only by the Brazilian state-owned company.

A rozhodão

Araújo declared that “not participating in the auction was a business decision” and that the decision was taken based on the group's capital discipline strategy.
By declaring that they were “expensive offers” and that they “did not pass the cut” by Shell, the blocks offered did not pass the approval cut by the oil company.

The executive added, upon leaving the auction, that Shell “has been adopting a very disciplined investment posture in 2019 and this decision of ours was taken after a very challenging internal process of (analysis) all these proposals”.

Shell's lack of proposals also happened in the 6th round auction for sharing the pre-salt layer that took place the following day, November 07th. 17 companies were authorized by the ANP to compete for the blocks, but no one made a proposal.
In addition to the shell, the international giants ExxonMobil, BP and Chevron were present, but the lack of bids only demonstrated the lack of interest of foreigners in the Brazilian bidding model.

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