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Auction of Brazil's pre-salt oil fields earns $807 million

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Staff Writer | June 9, 2018
Consortia formed by Petrobras and other major companies in the oil and gas sector won the bids for three blocks in the Campos and Santos basins in the fourth round of auctions for pre-salt blocks.
Brazil oil auction
Oil exploration   Other auctions are already planned
In total, the signing bonuses paid by the winning bidders reached R$ 3.15 billion.

There were three blocks on offer: Uirapuru, Dois Irmãos and Três Marias.

Due to the production sharing regime applied to all pre-salt auctions, the winning bidders are those that accept to pay the minimum signing bonus established by the National Petroleum, Natural Gas and Biofuels Agency (ANP) and agree to offer the most advantageous percentage of their resulting oil revenues to the federal government.

Those percentages went as high as 75.49% in today's auction, such as in the case of the Uirapuru block, where the winner was a consortium formed by Petrobras, Petrogal, Statoil and ExxonMobil.

The signing bonus was considerably higher than the minimum set by the government, leading to a 240.35% premium. Investments in the order of R$ 738 million are expected in the coming years.

In line with the government's new policy for the sector, other auctions are already planned for this and next year, including another round of pre-salt blocks.

In all, the current and upcoming auctions are expected to generate more than $100 billion in royalties and $80 billion in investment over the coming years.

Brazilian government forecasts point to R$ 18 billion collected in revenue from oil and gas companies in 2018 alone.