Brazil sells exploration rights for 33 onshore and offshore blocks

As reported by Reuters, Brazil yesterday auctioned off the exploration rights to 33 minor onshore and offshore oil and gas blocks.

At an event in Rio de Janeiro, firms paid a total of US$3.74 million for the rights to explore the areas in question.

The companies also pledged a minimum level of investment in the areas, all of which either failed to receive bids in previous auctions or were returned to the state after unsuccessful exploration.

The auction was the first round of what the government is calling a “permanent offer”, in which firms have the right to bid on a rotating basis for certain blocs that have been previously passed up or returned to the state.

A consortium composed of Exxon (50%), Murphy Oil Corp (20%) and Enauta Participacoes SA (30% ) was the main bidder, securing three deepwater blocs off the coast of Sergipe and Alagoas states.

Eneva SA, a Brazilian energy firm, was awarded several onshore fields in the northeastern state of Maranhao.

In a subsequent process, the government also sold the rights to 12 blocks with “marginal” proven reserves of oil or gas, mainly to small independent firms.

Source: Oilfield Technology