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Brazil: Pre-salt auctions to yield big investments

Staff Writer | October 18, 2017
The auctions of eight oil and gas blocks in the pre-salt layer are expected to generate R$ 100 billion in investments in Brazil.
Moreira Franco
LatAm   Scheduled for October 27
"Think of the number of jobs, of new jobs, that we will guarantee for the Brazilian people," said Minister of the General Secretariat of the Presidency Moreira Franco.

Scheduled for October 27, the auctions are expected to attract oil and gas companies from around the world.

"It's a very important fact for Brazil, and especially for the state of Rio de Janeiro," he said in a message on Facebook.

For Franco, the Brazilian government's efforts to increase transparency and improve bidding rules will lead to "a very positive result" for the country.

Most of the investments, likely to spread for the next 10 years, will be made to purchase inputs from Brazilian industry and hire related services.

The expectation of the private sector is that these operations will help create 500,000 jobs.

The upcoming October 27 events will include the second and third auction rounds of pre-salt fields (the first one took place in 2013, for the Libra field).

In the second round, four blocks will be auctioned in areas that have oil and whose reservoir extends to another area which is already producing.

The third round, in turn, will also auction four blocks, but in unexplored areas. Fields to be auctioned in the latter include Pau Brasil, Peroba, Alto de Cabo Frio Oeste and Alto de Cabo Frio Central.

The ANP (Brazil's National Petroleum Agency) made the calculations of likely investments at the request of newspaper O Globo.