Brazil to Overhaul Rules for Subsalt Auctions

Monday, January 20, 2020

Brazil's government is considering an overhaul in the rules for auctions of subsalt oilfields, a senior official told newspaper Valor Economico.

Special secretary to the Economy Ministry Waldery Rodrigues told the newspaper the government could reduce the signing bonuses for two subsalt areas - Sepia and Atapu - that did not receive bids in the last auction.

Rodrigues said another option could be to reduce the percentage of oil that the government will keep - known as 'profit oil'.

Another change could be scrapping the preference given to state-controlled oil company Petrobras in future auctions, in order to make oilfields more attractive to private investors.

Petrobras and the Economy Ministry did not immediately reply to requests for comment on the report.

Late last year, Brazil carried out a massive oil auction that failed to secure much interest, surprising officials.

Rodrigues added that the government wants to carry out the auction of the two oilfields this year, but that it is a "tight calendar."


(Reporting by Marcelo Rochabrun, editing by Louise Heavens)

Categories: Deepwater South America Regulations

Related Stories

Longitude Unveils Compact PSV Design Aimed at Cost Efficiency

Seatrium Wraps Up AmFELS Yard Sale

Eni Enlists Shearwater for 3D Seismic Survey in Timor Sea

Current News

QatarEnergy Receives Offshore Exploration License From Libya

Libya Awards First Oil Blocks Since 2007 to Chevron, Eni

TGS Embarks on Multi-Client 2D Survey off Angola

Orbital Marine Grows UK and Canada Tidal Energy Orderbook to 32MW

Subscribe for OE Digital E‑News