Stage set for Transfer of Rights mega-auction

Last Wednesday (25), Finance Minister Paulo Guedes finalized an agreement with leaders of the National Congress to slice up the proposed legislation for the Transfer of Rights mega-auction, clearing the last legislative hurdle and guaranteeing the auction will go ahead as planned. It was agreed that only the text that allows for the payment of Petrobras (R$33.6 billion) would be sent for promulgation, with the amounts allocated to states and municipalities being decided at a later date.

In 2010, Petrobras paid the government R$78.4 billion for the right to extract up to five billion barrels of oil in the Santos Basin. The extraction rights for the surplus oil, estimated at 6-15 Bbbl, will hit the auction block on November 6. The government expects to raise R$106.5 billion in signing bonuses.

After being approved at a meeting of the National Petroleum Agency (ANP) last Friday, the list of qualified companies was published yesterday in the Official Gazette. Potential operators include Chevron, Exxon, Shell, BP Plc, CNODC, CNOOC, Equinor ASA, Galp Energia, Petrogal, Petrobras, Petroliam Nasional Bhd and Total SA, while Ecopetrol SA, Wintershall and QPI have signed up as prospective non-operators.