As September comes closer to an end, more details about the two bidding rounds promoted by ANP are released by the press.
Eleven companies decided to participate in the bidding of Libra field. Mining and Energy Minister Edison Lobão said “seven of the 11 largest oil firms are participating, therefore we could not imagine a bigger success”. The companies had to pay BRL 2.05 million (US$931,818) as a registration fee.
Statoil, Exxon Mobil, British Petroleum, BG Group, Chevron and other investor-owned oil companies have chosen not to bid, opening space for Asian state-owned companies, such as Oil & National Gas Corp Ltd (India); Petroliam Nasional, or Petronas (Malaysia); and CNOOC Ltd (China).
The government has been studying measures to help Petrobras to increase its cash flow. Some of them are raising the fuel prices in Brazil and reducing dividends on the government’ shareholding in the company. According to CEO Maria das Graças Foster, Petrobras has the capacity to explore and produce 100 percent of the oil from Libra, but does not have the financial capacity to cover the investments needed to develop the area.
This week was also marked by the releasing of more information concerning the 12th bidding round, to take place in November 11th and 12th, 2013.
Including 240 blocks, the exploration periods will range from 5 to 8 years. The local content regulations were set as 70 to 80 percent for the exploration phase, and 77 to 85 percent for the development phase. The participation and access to data information fees range from BRL 15,000 to 30,000 per basin, or BRL 270,000 for the entire package.
All terms can be read on http://www.brasil-rounds.gov.br.