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Brazil’s ANP to Auction 158 Oil Blocks in Permanent-Offers

By Lise Alves, Senior Contributing Reporter

RIO DE JANEIRO, BRAZIL – At least 158 petroleum exploration blocks have been approved by environmental agencies to be auctioned off later on this year in the first permanent-offer system, according to the National Petroleum, Natural Gas and Biofuel Agency (ANP). Of the total blocks to be offered, 68 are located in sea basins and ninety in land basins.

Brazil,ANP holds public audience for first permanent-offer auctions of oil exploration blocks.
ANP holds public audience for first permanent-offer auctions of oil exploration blocks, photo by Cristina India do Brasil/Agencia Brasil.

“It’s a unique opportunity,” said ANP director Dirceu Amorelli, during a press conference on Wednesday. “With the permanent offer system, companies have a greater time for their technical teams to find synergies.”

According to the director, the petroleum agency is expected to make available by the end of next year 2,000 exploratory oil blocks for bidding in the permanent offer system. For him, the decision to keep the areas in permanent offer is attractive to investors.

“There may be mature (oil) fields that may not be commercially attractive to a particular large company but can be commercially advantageous to a smaller company,” concluded Amorelli.

The system calls for the continuous offer of oil fields that have been returned or are in the process of being returned, blocks not offered in previous bids, as well as blocks not acquired in previous rounds.

Among the approved blocks located in land basins are those of Amazonas, Espírito Santo, Paraná, Parnaíba, Potiguar, Recôncavo, São Francisco, Sergipe-Alagoas and Tucano.

The approved blocks offered in the sea basins include areas in Campos, Ceará, Pará-Maranhão, Potiguar, Santos and Sergipe-Alagoas basins.

According to ANP, the start of the permanent-offer system represents ‘another important step in resumption of exploration and production of oil and natural gas in Brazil’.

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