Brazil is increasing exploration and production and finally thrust its way to stand out as one of the world’s most important oil and gas players. The country has already auctioned several oil fields over the last few years. The election of the new conservative President seems to encourage the country to pave the way to foreign direct investment towards sound pre-salt and downstream projects until 2021.
The country energy council (CNPE) has approved the bid regulation and the oil and gas watchdog ANP has confirmed the 16th concession regime and 6th production sharing regime rounds for exploration in 2019.
In consonance with Brazilian legislation, the province of the pre-salt, located in the southeast part of the continental shelf, embraces the production sharing regime, while the concession regime is still maintained in remaining areas.
Pre-salt cluster reserves reaches over 50 billion barrels of oil, while remaining national reserves have around 14 billion barrels combined.
Concession regime Campos Basin's C-M-541 is a standout block, with a minimum signature bonus in excess of USD 353 million.
Pre-salt Production Sharing regime in the 6th Round set fixed signature bonuses from R$ 500 million (U$125 million) to R$ 5,05 (U$ 1.3 billion) while a minimum rate in excess oil for the government ranges from 22,87% to 36,98%.
It's worth to note that the tender protocol of the 6th Production Sharing Bidding Round indicates that Petrobras will have a mandatory participation as operator with thirty percent (30% ) in the areas of Aram, Sudoeste de Sagitário and Norte de Brava.
New Concession and Production Sharing Rounds for Brazil in 2019
The 16th bidding round for concession regime will offer 36 blocks in 5 basis:
The 6th bidding round for production sharing regime will offer five blocks: