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LatAmOil BRAZIL LatAmOil

Brazilian government postpones

two offshore bidding rounds

BRAZIL’S Ministry of Mines and Energy has southern states of Santa Catarina and Espírito
pushed back two upcoming rounds of auctions Santo. It contains many deposits of oil, most of
for offshore exploration blocks, owing to the which is considered to be of high commercial
coronavirus (COVID-19) pandemic. value and of very good quality.
The 17th round of bidding was scheduled to There has been strong international interest
take place later this year, in November, while the in these areas for some time, but the economic
18th round was due to take place in 2021. The problems that have plagued Brazil in recent
ministry did not immediately indicate when years have slowed development and deterred
the auctions might now go forward, but Reuters potential investors.
reported later that the 17th round was now due The country’s biggest-ever oil auction, held
to happen in 2021 and the 18th round in 2022. last November, turned out to be a disappoint-
This is not the first such delay. The National ment, receiving bids only from state-run Petro-
Agency of Petroleum, Natural Gas and Biofuels bras and two state Chinese firms. ™
(ANP), Brazil’s hydrocarbon market regulator,
approved the temporary suspension of the 17th
round in April of this year, citing the coronavi-
rus (COVID-19) crisis. At the time, the ANP
said its decision followed the Mines and Energy
Ministry’s decision to suspend pre-auction pro-
cedures, including the drafting of documents
and contracts, owing to economic uncertainty
caused by the health crisis.
Brazil’s government published a report
related to the 17th bidding round in early
March, with the intent of outlining the rules for
exploration and production on the continental
platform beyond 200 nautical miles (370 km).
The 17th round will cover 128 blocks, some of
which are in Brazil’s promising pre-salt zone.
The sites covering a total of 64,100 square km in
the Pará-Maranhão, Potiguar, Campos, Santos
and Pelotas basins.
Brazil’s pre-salt zone covers some 149,000
square km and is located offshore, between the The pre-salt zone straddles several offshore basins (Image: Petrobras)

Brazil presses charges against former

Maersk exec over alleged Petrobras bribe

PROSECUTORS in Brazil have pressed charges Reuters report.
against two people for allegedly obtaining con- More specifically, they alleged that Andersen
fidential market information from state run oil had participated in a scheme to bribe a Petrobras
and gas major Petrobras to benefit Danish-based executive, through an intermediary. The bribe
A.P. Moller-Maersk, the world’s largest shipping money was paid in exchange for confidential
company. information that would bring more business to
Prosecutors said in a statement that Viggo Maersk, they added.
Andersen, a former Maersk executive in Brazil, Andersen, for his part, has denied the accu-
had taken part in a scheme that led to at least sations. His lawyer told Reuters that he expected
$31.7mn in losses for Petrobras, according to a his client’s innocence to be proved.

Week 34 27•August•2020 www. NEWSBASE .com P15