Brazil 6th oil and gas licensing round nets record $219 million in bids

Peter Howard Wertheim
OGJ correspondent

RIO DE JANEIRO, Aug. 18 -- Brazil's sixth oil and gas licensing round held Tuesday and Wednesday netted $219 million in bids, "a record compared to the previous five rounds," said the government's National Petroleum Agency.

The minimum investment program to which the companies that won concessions committed themselves totaled $666 million.

During the round 913 blocks were offered in 29 sectors of 12 basins, and 154 blocks were snapped up by bidders. Of these blocks 89 are onshore, 10 in shallow waters and 55 in deep waters—together totaling 39,658 sq km.

State-owned Petròleo Brasileiro SA dominated the sale, winning 55 blocks alone and 52 in partnerships.

In other results, among international firms:

--Royal Dutch/Shell Group in partnership with Petrobras acquired 6 blocks in deep water.

--Statoil ASA won concessions for 6 blocks, 5 in partnership with Petrobras and 1 alone.

--Repsol YPF SA secured 4 blocks in partnership with Petrobras, all in deep waters.

--Kerr-McGee Corp. acquired 7 concessions, 1 alone, 1 with Petrobras, and 5 in partnership with Canada's EnCana Corp., Oklahoma City-based Devon Energy Corp., and South Korea's SK Corp.

--Portuguese state company Petrogal SA won participation in 20 blocks, all in partnership with Petrobras.

--Partex Oil & Gas Holdings Corp. (Portugal) won 4 onshore blocks.

--Synergy Group Corp. acquired 10 blocks in partnership Portsea Oil&Gas NL (Australia) and 1 alone.

And among Brazilian firms:
--Private Brazilian independent Starfish Oil&Gas SA secured 4 partnerships with Petrobras and 3 blocks alone.

--Arbi Petroleo Ltda. won 10 onshore blocks alone.

--Aurizonia Empreendimentos Ltda. acquired 2 onshore blocks alone.

--W.Washington Empreendimentos e Participações Ltda. obtained 5 onshore blocks alone.

--PetroRecôncavo SA won 2 onshore blocks alone.