Brazil

In 10 years, Brazil can lead global oil production, says Felipe Kury,ANP director

T&B Petroleum/Agência Brasil
31/07/2019 19:21
In 10 years, Brazil can lead global oil production, says Felipe Kury,ANP director Imagem: Courtesy Petrobras Agency Visualizações: 2230 (0) (0) (0) (0)

Brazil is already becoming a world leader in oil production over the next 10 years, said yesterday (30/07) the director of the National Agency of Petroleum (ANP), Felipe Kury for technical seminar of the 16th Round of Exploration Blocks for Oil and Gas and the 6th Pre-Salt Production Sharing Round in Rio de Janeiro. In addition, the ANP expects to hold two more auctions this year: onerous assignment and permanent offer.

 

The challenge "is to have this plurality of actors and various environments," said Kury. For him, this is "an incredible moment" for Brazil to become a leader in the sector. He added that this possibility is concrete and real due to the productive activity that is advancing.

 

Kury said the report by the Federal Court of Accounts (TCU) raising the possibility of conflict due to the fact that the auctions are too close will not change the schedule established by the ANP, nor its recommendation to the National Energy Policy Council (CNPE). ) to maintain the scheduled dates.

 

"TCU is doing the work it has to do. In every round, we exchange a lot of information. And it is a work that gives robustness to the process." On the ANP's side, he said that the guidance received from CNPE is being followed. In addition, multiple auction offers could make it possible for a company to participate in one trading session, which was unable to bid in another, he said. "There are multiple choices."

 

Kury pointed out that it was a very intense journey over the last two years to resume auctions. 72 blocks were sold with a collection of R $ 28 billion in signature bonuses. "It is a significant demonstration of the resumption of the oil exploration process in Brazil."

 

Schedule 

The 16th Round of Exploration Oil and Gas Blocks and the 6th Pre-Salt Production Sharing Round have auctions scheduled for October 10 and November 7, respectively. Already the auction of surplus assignment is scheduled for November 6. In the case of surplus of the assignment, there is one operator, which is Petrobras, and the ANP depends on company information to compose the technical data. The auction of the permanent offer, consisting of fields returned or in the process of being returned, exploratory blocks offered in previous rounds and not sold, as well as blocks returned to the ANP. The operation is scheduled for September 10 and has 47 companies registered to date.

 

Felipe Kury pointed out that the auction of surplus assignment is expected to raise R$ 106 billion in signing bonuses. "I would say it is the largest auction ever seen in the history of Brazil." Therefore, it was considered natural for TCU to ask for details to ensure that the process is done smoothly. Round 16 has an estimated minimum bonus of R$ 3.2 billion, if all areas are sold, with R$ 790 million of investment. Round 6 has a signing bonus of R$ 7.8 billion. For the permanent offer, there is no estimate yet from the ANP.

 

Innovation 

Kury noted that auctions held two years ago and auctions planned for this year have a 20-30 year horizon for production and move the entire chain, with the possibility of changing the country's energy matrix by injecting natural gas into matrix. "It can be transformational for the chemical sector and industry." With the relaxation of local content rules, said the director of the ANP, it will be possible to unlock some contracts and those that are signed already come with the new rules.

 

In Kury's expectation, this production will generate resources for investment in research and development (R&D), equivalent to 1% of production. "It also drives an entire service chain and the academic community."

 

He said that, as happened a few years ago with Petrobras investing in deepwater exploration research, of which it is a global leader, several other issues can be addressed with these funds generated by the R&D clause. In the last ten years, the amount invested in knowledge has totaled around R$ 13 billion. "Now it should double or triple over the next ten years." It estimated that the budget for innovation could reach R$ 1.8 billion this year alone.

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