Petrobras Criticizes Round 8 Bidding Restrictions

Brazil's federal energy company Petrobras (NYSE: PBR) has criticized hydrocarbons regulator ANP's move to limit the number of different operators in the 8th exploration licensing round, a company spokesperson told BNamericas, confirming local press reports.

ANP's decision limits the right of Petrobras and other companies to operate in an open market, newspaper Folha de S Paulo quoted Petrobras E&P director Guilherme Estrella as saying.

The bidding rules state that operators will be limited to 3 or 4 blocks within each of the 14 sectors on offer at the November 28-29 auction, at which the government wants to offer 284 blocks.

"Estrella expressed discontent with this detail," said the Petrobras spokesperson. "Petrobras complained about this during the public hearings, but as usual we will follow the rules set by ANP."

Estrella expects companies to make higher offers for the blocks than in the 2005 round because of higher oil prices, local press reported.

Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.