Petrobras, Shell, Chevron secure concessions in Brazil's new exploratory frontier

Petrobras, along with Shell, Chevron, and CNOOC were awarded concessions Dec. 13 to explore for oil and gas in 44 areas in a new exploratory frontier in Brazil that had previously seen no oil operations.

Petrobras, in consortia with Shell and CNOOC, and Chevron as an independent entity, secured rights to explore 44 out of the 165 deep-water areas that the National Petroleum Agency (ANP) auctioned in Pelotas, a basin in the Atlantic Ocean off the southern state of Rio Grande do Sul.

Of the areas awarded, a consortium of Petrobras (70%) and Shell (30%) obtained 26 awards in four regions.

Another consortium, led by Petrobras (50%) together with Shell (30%) and CNOOC (20%), secured three areas.

Chevron secured 15 areas in the auction.

The winning consortia paid $60 million for their licenses in the maritime area bordering Uruguay, which had been overlooked in previous auctions.

Petrobras, through a concession awarded in the area in 2000, drilled a well in 2001 but returned the concession after no oil was found.

Companies operating in Brazil are venturing into exploration in the southern region due to difficulties obtaining environmental licenses in the Equatorial Margin off the country’s northern states.

Interest in Pelotas basin in Brazil is increasing following the discovery of reserves in deep waters off the coast of Namibia in Orange basin with similar geological and geophysical features.

Reserves in Namibia, totaling up to 11,000 million bbl, have been discovered by Shell and TotalEnergies. Chevron, which paid higher sums for its Pelotas licenses than those demanded by the ANP on Wednesday, also holds concessions on the African coast.