ANP sets parameters for Petrobras's mature fields auction

Brazil's National Petroleum Agency (ANP) has set the bidding parameters for Petroleo Brasileiro SA's auction of 73 mature oil fields (OGJ Online, July 6, 2000). ANP will require bidders to have at least 1 million real in net shareholders' equity, said ANP Executive Director David Zylberstajn. They also must have net shareholders' equity equal to one third of the investment or 5 million real, whichever is less.


RIO DE JANEIRO�Brazil's National Petroleum Agency (ANP) has set the bidding parameters for Petroleo Brasileiro SA's auction of 73 mature oil fields (OGJ Online, July 6, 2000). ANP will require bidders to have at least 1 million real in net shareholders' equity, said ANP Executive Director David Zylberstajn. They also must have net shareholders' equity equal to one third of the investment or 5 million real, whichever is less.

The edict for the auctions is scheduled to be published July 14, and the auctions are to be held by November, said Zylberstajn. Royalties currently charged for production will remain intact at 9% unless oil output is increased from the mature fields, he said. In that case, royalties will be charged at 5% on incremental production.

The Brazilian National Economic and Social Development Bank (BNDES) may finance buyers in the auctions, he said.

Zylberstajn declined comment on whether the oil field auctions will attract large integrated oil companies who might build thermal generation plants on the sites in order to take advantage of the ability to produce steam for use in enhanced oil recovery operations.

More in IOR/EOR