Landmark Brazilian auction falls flat
Enormous offshore pre-salt reserves fail to entice IOCs to the Transfer of Rights surplus bidding round
The build-up to the country’s so-called Transfer of Rights bidding round all augured well for the Brazilian government. After months of compensation negotiations with Brazil’s state-owned oil and gas company Petrobras over previous investments made in the deposits, the dispute was finally resolved and the auction promised to attract a multitude of international oil companies (IOCs) to the huge pre-salt oil reserves on offer—potentially generating at least R$106bn ($25.85bn) in signing bonuses. But the narrative failed to follow the script. Of the four fields on offer only Buzios and Itapu were successfully auctioned, raising just under R$70bn, or 65pc of the total available bonuses. Both the
Also in this section
19 April 2024
Cairo’s currency problems have hindered investment, but Pharos sees considerable potential as Egypt emerges from crisis
18 April 2024
The Norwegian energy company is concentrating its efforts on specific regions and assets that meet strict cost and carbon criteria
17 April 2024
Uzbekistan and Kazakhstan provide opportunities after Europe turns it back, while also offering another gateway to China
16 April 2024
Commentators need to shake off the myths of the past, with rising oil prices a boon for US economy