16th Bidding Round

Bento Albuquerque MME celebrates record at auction of the 16th Bidding Round

T&B Petroleum/Press Office MME
11/10/2019 04:19
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"The record of $ 8.9 billion set in today's auction exceeded all expectations and shows that the policy for the oil and gas sector is on track and opens new prospects for auctions this year," he said today. , 10, the Minister of Mines and Energy, Bento Albuquerque (photo), shortly after the close of the 16th Bidding Round, held in Rio de Janeiro. In his opening speech, he stated: "We are seeking the goal of placing Brazil among the five largest oil producers in the world."

 

The round held yesterday will generate investments of at least $ 1.58 billion, only in the first phase of the concession contracts (exploration phase). Twelve of the 36 maritime blocks offered were sold, with an average signing bonus of 322.74%. Block C-M-541, in the Campos Basin, had the largest signing bonus ever offered to a block in concession rounds, about R $ 4.3 billion. In all, 11 companies from nine countries made offers, ten of which bought blocks. The total area sold was about 11.8 thousand km².

 

The purpose of the round was to explore the potential of the Campos and Santos basin areas outside the pre-salt polygon, as well as to attract investment to the new frontier Pernambuco-Paraíba, Jacuípe and Camamu-Almada basins. , where there is little exploratory activity. The signing of the contracts is expected to occur until February 14, 2020.

 

On the occasion, Bento Albuquerque pointed out that with the rounds held in 2019, R $ 1.1 trillion of investments will be obtained during the contracts, as well as the collection of significant amounts of R $ 117 billion, as a bonus of 2019. He pointed out that the next rounds, citing the 6th Sharing Round, scheduled for November 7th and the one that should be the largest auction of oil and gas areas ever held, of the excess volumes of the assignment contract , scheduled for November 6, “are the result of a process that relied on the selfless work of representatives of various bodies, the National Petroleum Agency (ANP), the Ministry of Mines and Energy (MME), the members of the National Policy Council (CNPE), the Investment Partnership Program (PPI), the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) and the Federal Court of Accounts (TCU) ”.

 

The Minister recalled that the established bidding schedule has been faithfully adhered to, which provides predictability in the offer of exploratory areas and generates confidence for investors in the sector. "Such rounds are thus windows of opportunity for the development of our oil potential," said the Minister. “And in view of the extension of our continental shelf, CNPE will begin the analysis for the inclusion, as of next year, of exploratory blocks beyond the 200 nautical miles limits, in a region that is being treated as a“ pre- salt". This denomination derives from geological studies conducted by the ANP, which point to the great potential of oil reserves in the region, ”he added.

 

Calendar until 2022

 

In his speech, Bento Albuquerque stressed that in addition to oil and gas, there are also plans for the electricity and mining sectors, such as the A-6 Energy Auction, scheduled for next week, the Energy Transmission Auction, in December, and the Palmeirópolis Auction, which foresees investments of around R $ 255 million. “At the end of 2019 we will incorporate another auction year into our current series, with the oil and gas and energy sectors having a calendar by 2022, all related to our Energy Expansion Plan (PDE), which will be updated. annually in December, ”said the minister. “Today we are taking another important step towards long-term sustainable national growth, generating jobs, income and development,” concluded Bento Albuquerque.

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