Brazil’s second and third presalt tender rounds held on Oct. 27 drew signature bonuses of $1.9 billion on six of eight blocks offered. Unlike concession regime rounds, production-sharing contract rounds are unbiddable and set in advance. Government profit-share rates were the primary factor in the bids, says Wood Mackenzie Ltd.
Brazil’s recent market-friendly reforms have loosened restrictive local content rules and reduced the burden on exploration and production companies, according to WoodMac Latin America research director Horacio Cuenca. Received bids for Brazil’s presalt auction were on average three times the minimum rates required.
ExxonMobil Corp. consolidated its presalt footprint during PSC Round 2, winning the extension of Carcara North block in partnership with Statoil ASA and Petroleo de Portugal SA, a unit of Galp Energia SGPS SA (OGJ Online, May 25, 2015).
Petroleo Brasileiro SA (Petrobras) secured the Peroba block with BP PLC and China National Oil & Gas Exploration & Development Corp. for a profit share bid of 76.96%. Peroba block is thought to contain more than 5 billion boe of prospective resource in place. BP partnered with Pertobras to secure a bid for the Alto de Cabo Frio Central block with a similar profit share bid.
Brazil is putting in place a schedule of multiple licensing rounds per year into the next decade, Cuensa said.
