16th bidding round raises record R$8.915 billion in signing bonuses

ANP’s 16th Bidding Round brought in R$8.9 billion (approx. US$2.17 billion) in signing bonuses, a record for concession rounds in Brazil. The round will generate investments of at least R$1.58 billion in the first phase of the concession contracts (exploration phase) alone. 

Twelve of the 36 maritime blocks on offer were scooped up, with an average signing bonus premium of 322.74%. Block CM-541, in the Campos Basin, had the largest signing bonus ever for a block offered in concession rounds, bringing in at about R$4.3 billion. In all, 11 companies from nine countries made offers, with ten winning blocks. The total area of the awarded blocks was about 11,800 km². 

According to Minister of Mines and Energy Bento Albuquerque, the auction exceeded all expectations. “The auction set a record for signing bonus collections, which shows that the policy for the oil and natural gas sector is on track, with today’s auction boosting the outlook for the Transfer of Rights and 6th Pre-Salt rounds later this year, ” he noted. 

Director-General of ANP Décio Oddone stressed the importance of the investments that will be generated. “As a result of this round, we estimate three to four new offshore platforms in the states of Rio de Janeiro and São Paulo, production of 400-500 thousand barrels per day and collections in the order of R$100 billion in taxes and government participation from the projects”, he said.

The purpose of the round was to explore the potential of the Campos and Santos basin areas outside the pre-salt polygon, as well as to attract investment in the new frontier Pernambuco-Paraíba, Jacuípe and Camamu-Almada basins, where there is little exploratory activity today.

According to ANP, the blocks that were not awarded in today’s auction will most likely be included in a permanent concession auction to be held at a later date.

See the blocks awarded in 16th round below:

CAMPOS BASIN (13 blocks)

CM-477 – Minimum bonus of R$110,894,000 – Bonus offered: R$2.45 billion

• Winner : Petrobras (70%), BP Energy (30%)

CM-541 – Minimum bonus of R$1,375,229,000 – Bonus offered: R$4.029 billion

• Winner: Total E&P of Brazil (40%), QPI Brazil (40%), Petronas (20%)

CM-659 – Minimum bonus of R$88.764.000 – Bonus offered: R$714 million

• Winner: Shell Brasil (40%), Chevron (35%), QPI Brasil (25%)

CM-479 – Minimum bonus of R$21,763,000 – Bonus offered: R$25.35 million

• Winner: ExxonMobil Brasil

CM-545 – Minimum bonus of R$18,618,000 – No offer for block

CM-661 – Minimum bonus of R $141,014,000 – Bonus offered: R$1.116 billion

• Winner: Petrobras

CM-715 – Minimum bonus of R$17,903,000 – Bonus offered: R$24.98 million

• Winner: Petrobras

CM-713 – Minimum bonus of R$116,142,000 – Bonus offered: R$550.8 million

• Winner: Shell Brasl (40%), QPI Brasil (25%), Chevron (35%)

CM-757 – Minimum bonus of R$12,055,000 – No offer for block

CM-795 – Minimum bonus of R$9,075,000 – Bonus offered: R$9.53 million

• Winner: Repsol

CM -825 – Minimum bonus of R$11,796,000 – Bonus offered: R$12.39 million

• Winner: Repsol (60%), Chevron (40%)

CM-845 – Minimum bonus of R$8,985,000 – Bonus offered: R$26.96 million

• Winner : Chevron (40%) Wintershall Brasil (20%), Repsol (40%)

CM-847 – Minimum bonus of R$13,23,000 – No offer for block
 

SANTOS BASIN (11 blocks)

SM-766 – Minimum bonus of R$18,047,000 – Bonus offered: R$54.14 million

• Winner: Chevron (40%) Repsol (40%), Wintershall Brazil (20%)

SM-881 – Minimum bonus of R$15,188,000 – No offer for block

SM-883 – Minimum bonus of R$372,704,000 – No offer for block

SM-885 – Minimum bonus of R$55,122,000 – No offer for block

SM-887 – Minimum bonus of R$155,163,000 – No offer for block

SM-889 – Minimum bonus of R$18,585,000 – No offer for block

SM-1006 – Minimum bonus of R$13,521,000 – No offer for block

SM-1008 – Minimum bonus of R$354,070,000 – No offer for block

SM 1494 – Minimum bonus of R$19,318,000 – No offer for block

SM-1496 – Minimum bonus of R$31,493,000 – No offer for block

SM-1500 – Minimum bonus of R$189,460,000 – Bonus offered: R$307.75 million

• Winner: BP Energy

 CAMAMU-ALMADA BASIN (4 blocks)

CAL-M-126 – Minimum bonus of R$2,388,000 – No offer for block

CAL-M-252 – Minimum bonus of R$3,305,000 – No offer for block

CAL-M-316 – Minimum bonus of R$2,759,000 – No offer for block

CAL-M-376 – Minimum bonus of R$2,364,000 – No offer for block
 

JACUÍPE BASIN (3 blocks) 

JA-M-26 – Minimum bonus of R$1,702.000 – No offer for block

JA-M-43 – Minimum bonus of R$2,493,000 – No offer for block

JA-M-45 – Minimum bonus of R$2,601,000 – No offer for block
 

 PERNAMBUCO-PARAÍBA BASIN (5 blocks) 

PEPB-M-731 – Minimum bonus of R$1,596,000 – No offer for block

PEPB-M-787 – Minimum bonus of R$1,596,000 – No offer for block

PEPB-M-843 – Minimum bonus of R$2,217,000 – No offer for block

PEPB -M-898 – Minimum bonus of R$2,493,000 – No offer for block

PEPB-M-900 – Minimum bonus of R$2,469,000 – No offer for block Source: G1 and ANP