Oil companies are expected to invest about 2.8 billion reais ($870 million) to complete minimum exploration work at concessions Brazil plans to auction in October, according to the country’s oil regulator, Bloomberg said July 9.
Signing bonuses for the offshore and onshore blocks should reach 979 million reais, Marcelo Castilho, the bidding superintendent at Brazil’s oil regulator known as ANP, said that day at a seminar in Rio de Janeiro.
Brazil will offer 266 blocks - 182 onshore and 84 offshore - in what will be the country’s 13th round. Brazil slowed the pace of oil auctions almost a decade ago after it discovered giant deposits in the so-called pre-salt region in deep waters, and overhauled the country’s oil legislation to increase the government’s control of the resources. Oil production growth in Latin America’s largest economy has fallen short of forecasts.
The regulator expects large and small producers to compete for acreage, which ranges from basins on land near natural gas discoveries to deep-water regions where single exploration wells can cost more than $100 million.
Recommended Reading
As ONEOK Digests Magellan, Sets Stage for More NGL Growth in 2024
2024-02-28 - ONEOK is continuing the integration of its newly acquired Magellan assets in 2024 as the company keeps an eye out for M&A opportunities and awaits regulatory approvals for certain projects.
Dallas Fed Energy Survey: Permian Basin Breakeven Costs Moving Up
2024-03-28 - Breakeven costs in America’s hottest oil play continue to rise, but crude producers are still making money, according to the first-quarter Dallas Fed Energy Survey. The situation is more dire for natural gas producers.
Enterprise Buys Assets from Occidental’s Western Midstream
2024-02-22 - Enterprise bought Western’s 20% interest in Whitethorn and Western’s 25% interest in two NGL fractionators located in Mont Belvieu, Texas.
EIA: E&P Dealmaking Activity Soars to $234 Billion in ‘23
2024-03-19 - Oil and gas E&Ps spent a collective $234 billion on corporate M&A and asset acquisitions in 2023, the most in more than a decade, the U.S. Energy Information Administration reported.
Continental Resources Makes $1B in M&A Moves—But Where?
2024-02-26 - Continental Resources added acreage in Oklahoma’s Anadarko Basin, but precisely where else it bought and sold is a little more complicated.