Brazil Sells Rights in Minor Oil Areas

Tuesday, September 10, 2019

Brazil auctioned off the exploration rights to 33 minor onshore and offshore oil and gas blocks on Tuesday, in what authorities framed as a bid to boost the industry outside of the nation's core, offshore pre-salt play.

At an event in downtown Rio de Janeiro, firms ranging from the Brazilian unit of Exxon Mobil Corp to domestic startups paid a total of 15.32 million reais ($3.74 million) for the rights to explore the areas in question.

The companies also pledged a minimum level of investment in the areas, all of which either failed to receive bids in previous auctions or were returned to the state after unsuccessful exploration.

The auction was the first round of what the government is calling a "permanent offer," in which firms have the right to bid on a rotating basis for certain blocks that have been previously passed up or returned to the state.

A consortium composed of Exxon (50%), Murphy Oil Corp (20%) and Enauta Participacoes SA (30% ) was the main bidder, agreeing to pay roughly 7.85 million reais for three deepwater blocks off the coast of Sergipe and Alagoas states.

Eneva SA, a Brazilian energy firm, scooped up several onshore fields in the northeastern state of Maranhao for about 3.5 million reais.

In a subsequent process, the government also sold the rights to 12 blocks with "marginal" proven reserves of oil or gas, mainly to small independent firms. The total signing bonuses for those blocks came to 6.98 million reais.


($1 = 4.10 reais)

(Reporting by Gram Slattery and Rodrigo Viga Gaier; Editing by Cynthia Osterman)

Categories: Energy South America

Related Stories

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

UK Firm Secures Exploration Extension for Two Blocks off Vietnam

Woodside to Shed Some Trinidad and Tobago Assets for $206M

Current News

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com