Brazil’s 15th Bidding Round had the largest signature bonus in history, R$ 8 billion

The 15th Bidding Round raised more than R$ 8 billion in signature bonus, the largest total in history of this kind of bidding rounds in Brazil. The auction will generate investments of, at least, R$ 1.2 billion in the first phase of the concession contracts alone (exploration phase).

22 offshore blocks were acquired, with goodwill of 621.91%. The round also had the biggest bonus offered for one block – the SC-AP5, on Campos Basin, with R$ 2.82 billion. The largest goodwill was that of block C-M-657, in the Campos Basin, of 1,314%. The total area acquired was of 16,400 km². There were no offers for the onshore blocks.

“The auction exceeded all expectations. We had diversity of operators, geographic diversity and remarkable bonuses”, said the director-general of ANP, Décio Oddone.

The director also highlighted the performance of some of the basins. “We had the strengthening of the Sergipe-Alagoas basin and the resumption of the Potiguar basin as an attraction pole for operators. But the main news is the resurgence of the Campos basin, which has experienced a period of disruption in the offering of areas. The importance of the basin was reestablished in the 14th Bidding Round, with high bonuses, and now we have the confirmation, with all its blocks acquired. It shows this basin’s high potential”, he said.

Amongst the government authorities who attended the public session, were the Minister of the General Secretary of the Presidency, Wellington Moreira Franco, the secretary of Oil, Natural Gas and Renewable Fuels of the Ministry of Mines and Energy, Márcio Félix, and the Directors of ANP, Décio Oddone (director-general), Aurélio Amaral, Dirceu Amorelli, Felipe Kury and José Cesário Cecchi.

In total, 13 companies, from 11 countries, participated in the offshore stage. Of these, 12 acquired blocks, 2 being domestic and 10 of foreign origin. The signing of contracts is expected to take place until November 30, 2018.

See below the blocks acquired in the 15th Round:

Santos SS-AUP1 S-M-536 ExxonMobil Brasil* (64%), QPI Brasil (36%)
Santos SS-AUP1 S-M-647 ExxonMobil Brasil* (64%), QPI Brasil (36%)
Santos SS-AUP1 S-M-764 Chevron Brasil* (40%), Wintershall Holding (20%), Repsol (40%)
Potiguar SPOT-AP1 POT-M-762 Petrobras* (100%)
Potiguar SPOT-AP2 POT-M-857 Wintershall Holding* (100%)
Potiguar SPOT-AP2 POT-M-859 Petrobras* (60%), Shell Brasil (40%)
Potiguar SPOT-AP2 POT-M-863 Wintershall Holding* (100%)
Potiguar SPOT-AP2 POT-M-865 Wintershall Holding* (100%)
Potiguar SPOT-AP2 POT-M-948 Shell Brasil* (100%)
Potiguar SPOT-AP2 POT-M-952 Petrobras* (60%), Shell Brasil (40%)
Campos SC-AP5 C-M-657 Petrobras* (30%), Statoil Brasil O&G (30%), ExxonMobil Brasil (40%)
Campos SC-AP5 C-M-709 Petrobras* (30%), Statoil Brasil O&G (30%), ExxonMobil Brasil (40%)
Campos SC-AP5 C-M-753 ExxonMobil Brasil* (40%), Petrobras (30%), QPI Brasil (30%)
Campos SC-AP5 C-M-755 BP Energy* (60%), Statoil Brasil O&G (40%)
Campos SC-AP5 C-M-789 ExxonMobil Brasil* (40%), Petrobras (30%), QPI Brasil (30%)
Campos SC-AP5 C-M-791 Shell Brasil* (40%), Petrogal Brasil (20%), Chevron Brazil (40%)
Campos SC-AP5 C-M-793 BP Energy* (60%), Statoil Brasil O&G (40%)
Campos SC-AP5 C-M-821 Repson* (40%), Wintershall Holding (20%), Chevron Brazil (40%)
Campos SC-AP5 C-M-823 Repson* (40%), Wintershall Holding (20%), Chevron Brazil (40%)
Ceará SCE-AP2 CE-M-601 Wintershall Holding (100%)
Sergipe-Alagoas SSEAL-AUP1 SEAL-M-430 ExxonMobil Brasil* (50%), Murphy (20%), Queiroz Galvão (30%)
Sergipe-Alagoas SSEAL-AUP2 SEAL-M-573 ExxonMobil Brasil* (50%), Murphy (20%), Queiroz Galvão (30%)

The blocks offered in the 15th Round were selected in high potential and new frontier basins, aiming to increase Brazilian reserves and production of oil and gas, expand knowledge of the sedimentary basins, decentralize the exploration investment, develop the national oil industry and secure domestic and foreign companies in the Country.

In addition to having offshore and onshore blocks in separate stages, among the innovations of this round also stands out: changes in the arbitration clause; the reoffering, at the end of the round, of blocks not acquired; and changes aimed at reducing bureaucracy, such as the exclusion of the requirement of notarization.

Upcoming rounds

The 4th Production-sharing Round is planned for June 7. It will offer areas located in the Pre-salt Polygon.

In addition, ANP starts this year the open acreage policy, which consists in the continuous supply of fields and blocks returned (or in the process of being returned) to the ANP, and of exploration blocks offered in previous rounds but not acquired. In the first moment, 846 blocks of 13 Brazilian sedimentary basins will be offered, totaling more than 285 thousand km².

The calendar of rounds also includes two auctions for 2019: the 5th Production-sharing Round, with areas in the Pre-salt Polygon, and the 16th Bidding Round of Blocks, under the concession regime.