Economy

Brazil green-lights pre-salt oil mega-auction

The government expects to gain some $25 billion in signing bonuses

Agência Brasil
26/09/2019 20:31
Visualizações: 1597 (0) (0) (0) (0)

The Brazilian Congress on Thursday (26) passed part of a constitutional amendment bill authorizing the government to hold a mega-auction for the concession of pre-salt oil exploration areas early in November.

 

The move comes following a deal forged yesterday between Senate President Davi Alcolumbre, lower house speaker Rodrigo Maia, and Economy Minister Paulo Guedes. The agreement aimed to pass items already approved by lawmakers from both congressional houses. “The passing of this measure is key to the development of Brazil,” said Senator Alcolumbre, who presided over the hearing.

 

An appealing offer

This is widely hailed as one of the most attractive auctions of the last few years. The government expects to gain some $25 billion in signing bonuses. Of this total, $8 billion will go towards compensating Petrobras and $17 billion to be distributed among the federal, state, and municipal governments. No consensus has been reached as to how this distribution will be conducted.

 

Under the deal, the federal government agrees to give three percent of its 70 percent share of the $25 billion to producing states—in this case, Rio de Janeiro, where the blocks to be explored are located. The federal government holds 67 percent, municipalities 15 percent, and states 15 percent, with Rio de Janeiro earning an extra three percent.

 

“For Rio de Janeiro, the additional three percent is crucial funding for address the state’s current fiscal situation. It’ll come as another breathing space,” said Senator Flávio Bolsonaro, who represents the state.

Most Read Today
see see
FIRJAN
Agrega + Indústria brings together entities, companies, ...
29/07/26
SOG 2026
ABPIP brings to Sergipe Oil & Gas a debate on strengthen...
28/07/26
Event
BR Aviation presents its portfolio of customized solutio...
23/07/26
Royalties
Royalties: amounts referring to May production distribut...
23/07/26
Fuels
Fuel and lubricants sector registers 1.8% drop in June, ...
22/07/26
IBP
Studies point to redundancy of the export tax and extra ...
22/07/26
PPSA
7th Spot Auction: PPSA markets cargoes from Atapu and Ba...
20/07/26
Results
Union oil production reaches 244 thousand barrels per da...
17/07/26
State of Ceará
Natural gas arrives in Cariri (CE) and strengthens econo...
16/07/26
Terminals
Vast announces contract extension with PETRONAS Brasil u...
15/07/26
International
War, oil and the dollar: how global fluctuations impact ...
13/07/26
ANP
Third-party access to natural gas flow pipelines and pro...
10/07/26
Agreement
ANP and Petrobras sign agreement to bring 335 offshore w...
07/07/26
Logistics
Vast Infraestrutura and Petrobras strengthen partnership...
07/07/26
IBP Positioning
Change of the instrument does not fix the illegalities o...
07/07/26
Energy Summit
Energy Summit 2026: Embrapii technologies strengthen Bra...
22/06/26
Energy Summit
Biodiesel and renewable fuels move to the center of the ...
22/06/26
Natural Gas
ANP extends public consultation on the calculation of th...
22/06/26
Rio de Janeiro
Firjan’s Oil Yearbook in Rio highlights that positive pr...
22/06/26
Biomethane
With a market five times larger since 2020, the biometha...
22/06/26
Petrobras
Petrobras approves investment in bio-jet fuel and renewa...
22/06/26
VEJA MAIS
Newsletter TN

Contact us

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you agree with our Privacy Policy, terms of use and cookies.