Petróleo Brasileiro (Petrobras) has acquired exploration and production rights for seven blocks during Brazil’s 14th bidding round.
The Brazilian state-run oil company says that it had bagged rights for six offshore blocks and an onshore block in the auction held by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
Petrobras will take up operatorship in all blocks. These include the offshore blocks where the oil company holds a stake of 50% in partnership with US petrochemical giant ExxonMobil.
Petrobras and ExxonMobil formed a consortium to successfully bid R$3.44bn ($1.08bn) for a couple of offshore blocks in Campos basin. The other four offshore blocks acquired by the partners are also located in deep waters in the SC-AP3 sector.
Petrobras says that along with its partner ExxonMobil, it had seen a great geological potential in the acquired blocks which supported their competitive bids.
The Brazilian oil firm stated: “Petrobras acted selectively in the auction, reflecting its strategic vision and marking the beginning of the recomposition of its exploratory portfolio, which seeks to recover the relationship between reserves and production and ensure the sustainability of the company’s future oil and gas production.
“In addition, the operation in consortia is aligned with the strategic objective to strengthen partnerships, sharing risks, combining technical and technological skills and capturing synergies.”
Petrobras revealed that the acreage in the Campos Basin was the most disputed sector in the public sale, having attracted interest from Shell, Total, Repsol, BP, Karoon and CNOOC. A total of 13 bids were received for the blocks in the basin, showcasing the liquidity of the acquired assets, stated Petrobras.
Apart from the offshore blocks, the Brazilian firm had acquired 100% of rights for an onshore block in the Paraná Basin. It hopes to discover natural gas deposits in the block which is closely located to the Brazil-Bolivia gas pipeline.
ANP sold rights for 37 blocks during the 14th Round of Bids under the Shared Production regime to 17 companies to raise an amount of R$3.8bn ($1.19bn).
Image: Petrobras alongside ExxonMobil won rights for six offshore blocks in Brazil. Photo: courtesy of num_skyman/Freedigitalphotos.net.