The Brazilian government could launch a mega-auction in June, but it needs to resolve issues regarding valuation of reserves first.

Shell Brazil, Shell Brasil, André Araújo, Royal Dutch Shell, Brazil oil and gas, Brazil oil production, E&P

Shell Brazil CEO André Araújo talks about the company’s plans and expectations for its future in Brazil’s oil and gas segment.

The Brazilian major intends to drill an average of 29 exploratory wells annually by 2020, nearly double the average number of wells drilled in 2016 and 2017.

Brazil oil and gas, presalt, auction, Rodrigo Maia, offshore

Despite the results, some believe more regulatory changes are needed.

A presalt environment requires a new LCM solution.

Land & Leasing

The price would be far less than the $2.45 billion that Sinopec paid in 2010 to buy the Argentine assets from U.S.-based Occidental Petroleum.

Potential buyers that qualified in a previous phase will have access to data on the Polos Riacho da Forquilha, Buracica and Miranga fields in the northeastern states of Bahia and Rio Grande do Norte.

The presalt auction of blocks in the Santos and Campos basins is planned for June 7, while the bidding for 70 blocks under the concession regime is scheduled for March 29, CNPE said in a statement.

The injunction was blocking the sale of a 22.5% stake in the Iara Field and a 35% stake in the Lapa Field to Total SA.

President Michel Temer’s government has enacted reforms to make the energy sector more attractive to foreign investment, and for the first time international oil firms will be allowed to operate fields in the region known as presalt.

Reservoir Evaluation

GeoPark Ltd. (NYSE: GPRK) has confirmed the successful drilling and testing of the Tigana Norte 4 appraisal well in the Tigana oil field in Llanos 34 Block in Colombia.

GeoPark Ltd.’s Tigana Norte 3 appraisal well has confirmed the Tigana/Jacana oil field’s extension toward the northeastern limits of Colombia’s Llanos 34 Block.

Anadarko, the operator, said the well hit 79 m to 110 m (260 ft to 360 ft) net of natural gas pay.

A test conducted with an electric submersible pump in the Guadalupe Formation across multiple sand units resulted in a production rate of about 1,800 barrels of oil per day (bbl/d) of 16 degrees API, with a 17% water cut through a choke of 38/64 mm and wellhead pressure of 80 pounds per square inch, the company said.

GeoPark said the well was drilled 780 m north of the Jacana 3 appraisal well further down dip to a bottom-hole location below the previous lowest-known oil, where it hit oil in the Guadalupe Formation.

Wildcats & Stepouts

A production test conducted with an electric submersible pump in the Guadalupe Formation resulted in a production rate of about 1,700 barrels of oil per day.

Located about 115 km (71 miles) offshore Brazil’s Rio de Janiero state, the Poraquê Alto well was drilled to a final depth of 4,568 m (14,987 ft) with a water depth of 1,107 m (3,632 ft), Petrobras said in a news release.

Drilled to a total depth of 1,676 m (5,500 ft), the Rio Grande Oeste 1 exploration well identified 15 potential reservoir sands with a potential net pay of 122 m (400 ft), GeoPark said in an Aug. 10 news release.

ExxonMobil, offshore Guyana, oil discovery, Payara, Liza

The latest discovery brings the estimated gross recoverable resources for the Stabroek Block to between 2.25 Bboe and 2.75 Bboe, the company said.

ExxonMobil, Hess, Liza, oil, discovery, offshore, Guyana

Drilled to 5,475 m in 1,692 m of water, the Liza-2 well encountered more than 58 m of oil-bearing sandstone reservoirs in Upper Cretaceous formations.