Page 4 - LatAmOil Week 31

LatAmOil COMMENTARY LatAmOil
Brazil has high hopes
for next offshore licensing rounds
Upcoming auctions could help support domestic gasi cation and generate large signing bonuses – or trigger bureaucratic quarrels
Ocyan
WHAT:
The South American country sees these unassigned sites as a reserve for future production.
WHY:
FELIPE Kury, the head of Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP), believes that his country has a lot rid- ing on the success of its next o shore licensing rounds.
On the one hand, there is quite a bit of oil and gas at stake. Kury said last week that upcoming auctions for exploration and production con- tracts had the potential to transform Brazil into one of the largest hydrocarbon producers in the world over the next 10 years.
of the sites it is opening up to investment. e sixth round of bidding for offshore produc- tion-sharing deals is likely to generate BRL7.8bn in signing bonuses, he explained, and the 16th round of o shore oil and gas exploration oppor- tunities will bring in another BRL3.2bn if all projects attract investors.
Meanwhile, he noted, the transfer of rights surplus programme may draw another BRL106bn. As a result, he remarked, “I would say it is the largest auction ever seen in the his- toryofBrazil.”
This bidding round covers exploration blocks that went unsold in previous rounds as well as blocks returned to ANP and elds that have been returned or are in the process of being returned to the agency.
“An incredible moment”
All of these auctions are scheduled to take place
soon. e transfer of rights surplus auctions will happen on September 10, and 47 companies
have already signed up to participate.. 
BP is concerned about
thepossibilityofexces- ecountrywasalreadyproducing2.53mn
sive costs..
WHAT NEXT:
Brazil’s government ought to start developing a strategy to counter its critics.
barrels of oil equivalent per day (boepd) as of 2018 and hopes to push output up even more by bringing new deepwater elds on stream. It also hopes that the new elds will contain enough gas to support a wide-ranging domestic gasi- cation initiative and to ensure that Brazil has enough gas to last for the next 20-30 years.
On the other hand, there is also quite a bit of money at stake. According to the ANP head, Bra- zil’s government could collect nearly BRL120bn in signing bonuses once it signs contracts for all
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w w w . N E W S B A S E . c o m Week 31 07•August•2019