Pre-salt auction receives $807.7 million in bonuses
Brazil’s National Oil, Natural Gas, and Biofuels Agency (ANP) sold three of the four blocks offered as part of the fourth pre-salt auction, carried out today (Jun. 7). Bonuses added up to $807.7 million.
The most coveted block and the first to be won—Uirapuru, on Santos basin—was won by a consortium formed by Petrobras (30%), Portugal’s Petrogal (14%), Norway’s Statoil (28%), and ExxonMobil (28%), which offered 75.49% of profit oil. The bid also surpassed the 22.18% minimum set for the auction. The premium stood at 240.3%. The signing bonus was $679.5 million.
With a profit oil of 75.49% for Uirapuru, the government is likely to receive 90% of the project’s net revenues, ANP said. “It’s something you don’t usually see even in the Middle East. This means that, deducting companies’ investments and costs, of the projects’ net revenues, 90% goes to Brazilian society.”
Also located on Santos basin, the Três Marias block attracted two bidders. The winning consortium is formed by Shell Brasil (40%), Chevron Brazil (30%), and Petrobras (30%), with a premium of 500.36% and 49.95% of oil to be set aside for the Brazilian government. Some $25.64 million will be paid as bonus.
The Dois Irmãos block, on Campos basin, was won after a single bid by Petrobras (45%), BP Energy (30%), and Statoil Brasil O&G (25%), with a zero premium and a percentage of 16.43% of oil handed over to the government. The signing bonus stood at $102.56 million. On the same basin, the Itaimbezinho block got no offers.
Deadlines
ANP has set the deadline for the payment of signing bonuses for September 28. The bonus is based on the market’s expectations on the production potential of the blocks on sale and the degree of competitiveness in the area auctioned. Contracts are to be signed by November 30.
In all, the Brazilian government expects to receive $5.82 billion in proceeds from licenses and concessions.
