Petrobras BP, Among Winners in Brazil's 11th Bidding Round

Petroleo Brasiliero S.A. (Petrobras), BP plc and Total S.A. are among the winning bidders for deepwater acreage in Brazil's National Petroleum Agency's (ANP) 11th bidding round, the first bidding round held since December 2008 and the first under Brazil's new petroleum law.

ANP offered 289 blocks in 23 sectors 11 and sedimentary basins in the bidding round. One hundred and forty two blocks were awarded, an ANP spokesperson told Rigzone. Thirty-nine companies from 12 countries made offers; 30 companies made winning bids.

BP and partners Total, Petrobras and Petrogal SA will explore for oil and natural gas in eight concession blocks, including FZA-M-057, FZA-M-59, FZA-M-86, FZA-M-125, and FAZ-M-127 in the Fox do Amazonas basin, BAR-M-346 in the Barreirinhas Basin, and POT-M-764 in the Potiguar basin. The companies will have the right to develop any commercial discoveries under the Brazilian concession regime.

BP will serve as operator with a 70 percent stake in Block FZA-M-59, and in Block BAR-M-346 with a 50 percent stake, BP said in a statement Wednesday. The contract awards follow BP's re-entry in the Brazilian upstream in 2011 with its acquisition of interests from Devon Energy and farm-in to four Petrobras-operated deepwater blocks in Brazil's equatorial margin last year.

The awards will increase BP's frontier exploration exposure along Brazil's equatorial margin and plays to its strengths in deepwater, the company said in a statement. 

"It reaffirms our long-term partnership with Brazil, expanding our upstream portfolio to 22 exploration and production concessions in seven different basins, in addition to our biofuels, lubricants, aviation and marine fuel businesses," said Guillermo Quintero, BP Brazil Regional President, in a statement.

Paris-based Total received 10 new exploration licenses in the bidding round. The company reported Thursday it will operate with 40 percent interest five blocks in the Foz do Amazonas basin – FZA-M-57, FZA-M-86, FZA-M-88, FZA-M-125 and FZA-M-127. Total also will operate with 45 percent interest in block CE-M-661 in the Ceara basin.


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