Results From Brazil's 3rd Licensing Round

Bidding started on Tuesday for oil exploration licenses for 53 blocks on and offshore Brazil in the third licensing round ever held. Competition by foregein companies was first permitted five years ago.

Petrobras was awarded Block BM-S-17 and will act as operator with a 50% interest along with it’s partners Statoil with 25% and Enterprise Oil with 25%. They bid US $8.5 million for the acreage. This block is located in Santos Basin and covers a 1,611 square kilometer area.

Petrobras in partnership with Queiroz Galvao, Petroserv and El Paso were awarded block BM-CAL-5 in the Camamu-Almada Basin for a bid of US $2.5 million. Petrobras will act as operator with a 45% interest, Queiroz Galvao will have an 18.34% interest, Petroserv will have an 18.33% interest and El Paso will have the remaining 18.33%. Block BM-CAL-5 covers an area of 1,119 square kilometers.

Petrobras was awarded sole interest in Block BM-CE-1 offshore Ceara State. This block covers an area of 1,281 square kilometers. Petrobras bid US $123,000 for this block.

Block BM-ES-9 located offshore Espirito Santo State was awarded to Esso Brasileira de Petróleo Limitada as operator with a 40% interest. Other partners in this block are Petrobras with a 30% interest and Kerr-McGee with the remaining 30% interest. BM-ES-9 covers 2,165 square kilometers. The Esso group bid approximately US $4.4 million on this block..

27 blocks wil be auctioned on Tuesday and the remaining 26 blocks will be auctioned on Wednesday.


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