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Brazil unclear over extend of subsalt contract auction scheduled for 2015

26th March 2014

The next round of bidding for exploration rights will start mid-2015 to boost production levels, according to a government official.

Brazil

Brazil is to begin the sale of new exploration rights next year but is unsure how much of its subsalt deposits will be on offer.

Oil secretary Marco Antonio Almeida is reported to have said to reporters: "Next year we will have an auction for sure, the first half at the latest.It could be pre-salt or not, it could be marginal fields. We haven’t made any decision yet.”

This move follows a decline in state-run firm Petroleo Brasileiro’s output.

On March 13, Magda Chambriard, the head of Brazil's oil regulator, ANP, which runs all Brazilian oil auctions, said she was taking a "conservative" stance toward oil rights auctions this year, a comment taken to mean that the once annual sales would not happen in 2014. ANP have yet to respond to the latest news.

It has not been stated whether the auction would be an oil rights concession auction or an auction of production-sharing rights

Last year, exploration rights for a region that could potentially yield 50 billion barrels of oil was auctioned. Most of this potential is found in deepsea subsalt deposits off the Brazilian coast.

 

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