Brazil's National Petroleum Agency launches first day of Round 3

Brazil's National Petroleum Agency (ANP) Tuesday said 42 oil companies qualified to participate in the third licensing round for exploration and production concessions for 53 blocks throughout the country. The 2-day auction process started Tuesday. If all the 53 blocks were auctioned off, the minimum required investment would have been $2.1 billion. However, of the 27 blocks announced Tuesday, 10 received no bids.


By an OGJ Online Correspondent

HOUSTON, June 19 -- Brazil's National Petroleum Agency (ANP) Tuesday said 42 oil companies qualified to participate in the third licensing round for exploration and production concessions for 53 blocks throughout the country.

If all the 53 blocks were auctioned off, the minimum required investment would have been $2.1 billion, said ANP. However, of the 27 blocks announced Tuesday, 10 received no bids.

The exploration phase for the various concessions will last from 3-9 years.

Of the 42 participants, 17 companies are from the US, 12 from Europe, 10 from Latin America of which 6 are from Brazil, 2 from Asia and 1 from Oceania.

The blocks are located in 12 sedimentary basins: Santos, Campos, Espirito Santo, Jequitinhonha, Camamu-Almada, Sergipe-Alagoas, Parana, Reconcavo, Potiguar, Ceara, Barreirinhas and Para-Maranhao.

Ten blocks are located onshore and 43 offshore. Of the offshore blocks, 43 are in the Santos, Campos and Espirito Santo basins. Of the 43 offshore blocks, 12 are in shallow waters (less than 400 m) and 31in deep water reaching up to 3,000 m.

The highest bid revealed Tuesday was 117.7 million reales ($48.7 million), offered by Phillips Petroleum Co. for BM-ES-11. Phillips bid alone for the stake.

Ocean Energy Inc. and Amerada Hess Corp. jointly bid 74 million reales for BM-C-15. Ocean Energy will operate the block with 65%.

A consortium in which Petroleo Brasileiro SA (Petrobras) will be the operator and has a 50% stake bid highest for the concession for the BM-S-17 block off Sao Paulo state in the Santos basin for 20.7 million reales. Other partners are UK's Enterprise Oil PLC and Norway's Den Norske Stats Oljeselskap AS, each with 25%.

A different consortium formed by Petrobras won the concession for offshore block BM-CAL-5 in shallow waters at Camamu-Almada basin in Bahia state for 6.3 million reales. Petrobras will be the operator with a 45% stake. Partners are Queiroz Galvão Perfurações SA, 18.34%; El Paso CGP Co., 18.33%; and Petroserv SA, 18.33%.

More in Companies