Gov't to announce areas available for oil exploration this month

Mines and Energy Minister Fernando Coelho said today (Jan. 12) that the government expects to raise up to $1.421 billion for the 14th Round of Bids for blocks for the exploration and production of oil and natural gas, including the pre-salt layer. The lease on the fields are scheduled for this year.

"This expectation is based on minimum bid values, because we may receive higher offers," said the minister, announcing that by the end of the month onshore, pre-salt, and post-salt exploration areas will be published in the Federal .

"Three rounds have been announced for this year: the round of onshore [areas], the second round of the pre-salt and the round of post-salt. We need to be united so that they are all a great success," said the minister.

After the swearing-in ceremony of the new director of the National Agency for Petroleum, Natural Gas and Biofuels  (ANP), Décio Oddone, in Rio de Janeiro, the minister said the government is working to make the bidding round of the onshore areas in May. The second round of the pre-salt areas shall be made in the first semester. Leases for post-salt areas shall be granted in September.

Auctions resumed

"We need to resume auctions. We don't want to repeat our last failure. Whether it has been caused by Petrobras' obligation to participate in it, or for the difficult moment faced by the company, or for a series of questions and doubts that the industry had, we are solving everything. We expect to have a great success in the bidding rounds this year and, then, we can have a regular schedule."

In the 13th Round of Bids, in October 2015, only 14% of the blocks offered were sold. Of the 266 blocks offered by the ANP, only 37 were sold by companies ed in the bidding rounds.

"The industry sees the regularity of bidding rounds as something positive. I also agree. A regular schedule allows the companies to prepare themselves, and learn better about the Brazilian soil. When we have companies that are familiar with the country, we have more competitive processes," said new ANP Director Décio Oddone.

Oddone pointed out that the oil and gas sectors in Brazil are in a new moment, attracting capital, showing process agility, and facilitating investment aimed at generating jobs and income.

Translated by Amarílis Anchieta