bidding round
Brazil
big opportunities and achievements in the oil and gas sector Brazil is today a promising horizon in the global oil and gas industry map. Aside from having lived a historic year with the achievement of three bidding rounds for exploration areas, the International Energy Agency pointed the country as one of those that will have greater increase in production volume in the coming years.
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Magda Chambriard is Director General of the National Oil, Natural Gas and Biofuels Agency (ANP)
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T&B Petroleum 36
onsidering only the discoveries already made, especially in the pre-salt area, a production of more than four million barrels daily is expected in the beginning of the 2020 decade. It’s a monumental leap, which opens opportunities for the whole industry of goods and services and allows us to picture Brazil in a new level of economic and social development. The three bidding rounds held last year, each with a different purpose, marked the beginning of a new era for the oil and gas sector in the country. Focusing on the Brazilian equatorial margin, the 11th Round, held in May, had R$ 2.48 billion (US$ 1.2 billion) in signature bonuses and a minimum commitment of around R$ 5.8 billion (US$ 3 billion) worth of investments in the Minimum Exploration Program, record numbers in the bidding rounds held so far. One hundred and eighteen concession contracts were signed in promising areas of North/Northeast Brazil and EspĂrito Santo. The area granted for exploration increased in more than 60 thousand km2, an increase of 22% compared to the numbers prior to the 11th Round. The Libra field, first area to be auctioned in the production sharing regime, raised R$ 15 billion (US$ 6.5 billion) in signature bonuses and guaranteed an investment commitment of about R$ 600 million (US$ 258 million) in the exploration stage. But that is just a small part of the benefits to the country. Libra is expected to generate investments of up to R$ 130 billion (US$ 60 billion) requiring 12-18 large platforms and 60-90 support vessels, which means orders to the domestic and international industry and generation of jobs in various sectors. At peak production, the Libra field is expected to reach 1.4 million barrels/day, depending on its development speed. That corresponds to more than half the current production in Brazil. ANP estimates that