The National Energy Policy Council (CNPE) authorized last Friday, October 3, the auction for the sale of the rights and obligations arising from the Production Individualization Agreements (AIPs) of the shared reservoirs of Mero, Atapu, and Tupi (Uncontracted Areas Auction) and set the total minimum bid amount to be paid to the Federal Government at BRL 10.2 billion for the sale of these rights and obligations. The Uncontracted Areas Auction will take place on December 4 at B3, in São Paulo. Currently, the Federal Government holds a 3.5% stake in the Mero shared reservoir, 0.551% in Tupi, and 0.950% in Atapu.

For the government’s participation in Mero, the highest minimum bid was set at BRL 7,646,556,900.00. For Tupi, the minimum amount set was BRL 1,692,050,700.00, and for Atapu, the minimum bid established was BRL 863,324,700.00.

The CNPE decision also established that, in addition to the minimum offer, there may be a future payment to the Federal Government known as earn-out. This is a contractual provision that conditions the payment of a variable amount based on the occurrence of certain future events, such as increases in oil prices (Brent) and future redeterminations of participation shares in the reservoirs, which could result in a higher percentage of participation for the uncontracted areas.

PPSA’s CEO, Luis Fernando Paroli, emphasized that the earn-out clause is essential to ensure additional remuneration for the Federal Government, preserving the value of the operation over time. “Our team worked to assess the potential gains from future events in order to balance the benefits for the country — and consequently for Brazilian society — while maintaining the attractiveness of the auction, ensuring a fair sharing of benefits with the buyers,” explained Paroli.

PPSA’s Technical Director, Tabita Loureiro, highlighted that the company’s technical studies already indicate potential increases in the participation of uncontracted areas in the Mero and Atapu reservoirs. “In the case of Tupi, a new participation share has already been negotiated. This represents a unique opportunity involving world-class assets — the largest producing pre-salt reservoirs — with no exploration risk and significant upside potential,” she stated.

On Wednesday, October 8, PPSA will publish on its website the auction notice, along with the draft Addendum to the Production Individualization Agreement (AIP) for each reservoir and the corresponding Sale Contract, as well as other relevant documents.

Interested companies can already access the Data Package, which will be available for consultation until November 5, both on a virtual platform and in person. In addition to the materials provided, companies may request on-demand technical and management meetings for specific clarifications.

Access to the Data Package is optional and not a requirement for participation in the auction, but it represents a strategic opportunity for potential investors to gain an in-depth understanding of the technical, economic, and contractual aspects of the offered areas.

Additional Information

The Tupi, Mero, and Atapu fields are among the six largest oil producers in Brazil today, according to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP).

All three fields are operated by Petrobras and have major international partners — Shell, Total, CNODC, CNOOC, and Galp. PPSA acts as the Federal Government’s representative in the uncontracted areas of the shared reservoirs of Mero, Tupi, and Atapu and is responsible for marketing the government’s share of oil and natural gas production in these areas.

📄 See the CNPE resolution: https://www.in.gov.br/en/web/dou/-/despacho-do-presidente-da-republica-660018874

📊 Learn more about the Uncontracted Areas Auction: https://www.presalpetroleo.gov.br/leilao-de-areas-nao-contratadas/