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Brazil: Petrobras wins 34 blocks in 11th round

17th May 2013

Petrobras buys the most blocks and offers the biggest signature bonus in Brazil’s 11th oil and gas round

Brazil: Petrobras wins 34 blocks in 11th round
Petrobras technicians claim the company has secured the blocks with the highest exploratory potential, located in the Foz do Amazonas, Espírito Santo and Barreirinhas Basins

Petrobras on Thursday invested USD 700m to acquire the most blocks offered in the 11th tender of oil and gas blocks held by the National Petroleum Agency (ANP), the company said in a written statement on Friday.

Petrobras bought, whether on its own or in partnerships, 34 of the 289 blocks offered in the bid. The total invested by Petrobras and its partners in the 11th round was approximately USD 720m, of which USD 265m came from its own resources and USD 455m from partners.

It also secured, in its technicians’ opinions, the blocks with the highest exploratory potential offered by the agency, located in the Foz do Amazonas, Espírito Santo and Barreirinhas Basins. In its strategy to acquire onshore blocks, Petrobras invested primarily in the Parnaíba Basin, seeking natural gas accumulations.

“The result of the bid will… allow the company to expand its knowledge of the geology of the sedimentary basins in the blocks it bought, by drilling wells and acquiring a large amount of seismic data, which will increase the likelihood of discovering new oil and natural gas accumulations,” Petrobras said. According to the company, forming partnerships with other players is crucial to this.

 The company’s strategy in the bid is consistent with the goal outlined in its 2013-2017 business strategy plan of incorporating new exploratory areas to achieve its projected future production curve.