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: 1234 (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
ADIPEC 2025
From energy to intelligence to impact: ADIPEC 2025 sets ...
07/11/25
ADIPEC 2025
ADIPEC 2025 Day 3: Energy, finance and technology leader...
07/11/25
Results
Petrobras reaches net income of R$ 32.7 billion in the t...
07/11/25
Cop30
IBP Advocates Global Criteria for a Just Energy Transition
07/11/25
Offshore
Decommissioning Takes Center Stage
07/11/25
Natural Gas
ANP Approves Action Plan on Gas Pipeline Transportation ...
07/11/25
ADIPEC 2025
AI is no longer a side project: Technology leaders at AD...
05/11/25
Environment
ANP Holds Workshop on Methane Emissions in Partnership w...
05/11/25
International Event
International Energy Event Opens Registration for Activities
05/11/25
RD&I
Norway and Brazil Launch New Joint Research Funding Call...
05/11/25
Partnership
DeepOcean and Jana Marine enter Saudi Arabia subsea part...
04/11/25
ADIPEC 2025
ADIPEC 2025: Industry calls for policy pragmatism, embra...
04/11/25
ADIPEC 2025
Johnson Matthey: Leadership and Innovation Driving the G...
31/10/25
OTC Brasil 2025
OTC Brazil connects the Equatorial Margin’s potential to...
30/10/25
OTC Brasil 2025
New Version of ANP’s Greenhouse Gas Emissions Dynamic Da...
30/10/25
OTC Brasil 2025
Port of Açu and IKM Advance Partnership to Create Brazil...
30/10/25
OTC Brasil 2025
Port of Açu and SISTAC Sign Agreement to Provide Decommi...
29/10/25
Royalties
Royalties from August Production Distributed to States a...
29/10/25
OTC Brasil 2025
iUP Innovation Connections Links Innovation Strategy to ...
29/10/25
ANP
Permanent Production Sharing Offer: Registered Companies...
29/10/25
OTC Brasil 2025
Firjan Showcases Technology and Innovation Solutions for...
29/10/25
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.