The 16th Bidding Round collected R$ 8.9 billions in signature bonuses, a record value among the concession rounds already held in Brazil. The round will generate investments of at least R$ 1.58 billion in the first phase of the concession contracts alone (exploration phase). 

Twelve of the 36 maritime blocks offered were acquired, with an average goodwill of signature bonus of 322.74%. The block C-M-541, in the Campos Basin, had the largest signature bonus ever offered to a block in concession rounds, about R$ 4.03 billion. In all, 11 companies from nine countries made offers, ten of which acquired blocks. The total area acquired was about 11.8 thousand km². 

For the Minister of Mines and Energy, Bento Albuquerque, present at the public session, the bid exceeded all expectations. “The auction had a record in offered signature bonus. This shows that the policy for the oil and natural gas sector is on track and opens new prospects for the Transfer of Rights Surplus Bidding Round and the 6th Production Sharing Round, which will be held this year”, he noted. 

The Director-General of ANP, Décio Oddone, highlighted the importance of the investments that will be generated. “As a result of this round, we estimate from three to four new offshore platforms in the states of Rio de Janeiro and São Paulo, a production of 400 to 500 thousand barrels per day and a collection of around R$ 100 billion in taxes and government takes on the course of the projects ”, he said. 

In addition to the Minister and ANP’s Director-General, other authorities, representatives of companies and the ANP directors Aurélio Amaral, Amorelli Júnior, Felipe Kury and Cesário Cecchi also attended.

Blocks acquired in the 16th Round:

*Operator

Highlights

Total led a consortium that secured the Campos Basin's C-M-541 block, which was considered the bid round's most attractive acreage.

The C-M-541 block contains the Nemo prospect, which is considered the largest in the sale at an estimated 6.87 billion barrels of unrisked crude, according to the ANP.

Total will hold a 40% operating stake, while Qatar Petroleum will own a 40% minority share and Petronas 20%.

Petronas secured a 100% stake in the Campos Basin's C-M-661 block. Petronas agreed to pay a Real 1.1 billion signing bonus and drill a single well in the block.

Petronas also won 100% development rights to the Campos Basin's C-M-715 block, paying a Real 24.9 million signing bonus and committing to drilling a single well.

Shell led a consortium that made three bids, winning development rights to two blocks.

The company teamed with Chevron and Qatar Petroleum to win rights to the Campos Basin's C-M-713 block, paying a Real 551 million signing bonus. Shell will hold a 40% operating stake, which Chevron retaining 35% and Qatar Petroleum 25%.

The C-M-713 block holds the 16th bid round's second-biggest prospect in Tamboril, which is estimated to contain about 4.34 billion barrels of unrisked oil in place, according to the ANP.

Shell, Chevron and Qatar Petroleum also paid Real 714 million for development rights to the C-M-659 block, committing to drilling a single well in the acreage.

Petrobras won a single block in partnership with BP. The companies paid Real 2.04 billion for development rights to the C-M-477 block. Petrobras will hold a 70% operating stake, with BP owning 30%.

Repsol participated in the 16th bid round, both as a solo player and in partnership with Chevron and Wintershall DEA.

Repsol purchased a 100% stake in the Campos Basin's C-M-795 block for Real 9.5 million. Repsol will also hold a 60% operating stake in the C-M-825 block, with Chevron retaining the remaining 40%.

Chevron secured a 40% operating stake in the Campos Basin's C-M-845 block and the Santos Basin's S-M-766 block. Repsol will own a 40% minority share in the two areas, with Wintershall retaining the remaining 20% in each block.

The blocks are all close to areas the three companies acquired in recent sales.

BP paid Real 307 million for 100% of the Santos Basin's S-M-1500 block. The bid could be a precursor to an aggressive move at Brazil's sixth subsalt production-sharing auction on November 7, where the adjacent Bumerangue area will be sold.