Brazil’s 13th licensing round flops after 14% of blocks sold

Brazilian oil industry suffered the worst result in a decade, with only 37 of 266 blocks awarded

Brazil’s oil industry was left reeling after a disappointing 13th licensing round in which just 37 of 266 blocks were awarded. This was by far the worst result since the pre-salt discoveries a decade ago. The biggest winners were Parnaiba Gas and GDF Suez’s Brazilian business, which each hauled in six blocks, many of which were focused on onshore gasfields. Brazilian independents QGEP and UTC also used the round to add to their acreage positions. Widely seen as a referendum on the state of the oil industry, the round reflected the extent of the problems facing Brazil’s oil industry. It is not just the low oil price. The multi-billion dollar Petrobras Lava Jato corruption investigation has re