Brazil’s national oil authority ANP on Wednesday (Oct. 7) raised BRL 3 billion in signing bonuses from the auction of 49 oil exploration blocks under the concession regime. The auction is part of the 6th cycle of the Permanent Concession Offer.

Investments totaling R$ 4.5 billion are projected for the first phase of the contracts alone - the exploration phase.

Notícias relacionadas:

• Brazil’s largest pre-salt auction awards 7 of 13 blocks.
• Auction to offer 23 pre-salt exploration blocks in Brazil.

The 49 blocks and three areas with marginal accumulations awarded are located in the Potiguar, Tacutu, Recôncavo, Parnaíba, Tucano Sul, Campos, and Ceará basins.

The BRL 1.5 billion in signing bonuses paid for the marginal areas in the Potiguar and Tucano Sul basins represented an average premium of 442 percent.

The concession contracts are scheduled to be signed by February 26, 2027.

Production-sharing offer

Also on Wednesday, ANP held the largest auction of oil and gas exploration and production blocks in the so-called Pre-Salt Polygon, as part of the 4th Cycle of the Permanent Production-Sharing Offer. The auction resulted in the award of seven of the 13 blocks offered, generating BRL 530 million in signature bonuses for the Brazilian government.

Under the production-sharing model - which applies specifically to pre-salt areas or those considered strategic by the government - the oil remains the property of the Brazilian state, and the winning bidder is the company that offers the largest share of surplus oil, that is, the production remaining after costs have been recovered. Under the concession model, ownership of the oil produced is transferred to the company that wins the auction, which is selected based on the highest signing bonus.