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
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
28 April 2026
Restoring supply from Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Iraq involves complexities far beyond simply adjusting operational controls
28 April 2026
Datacentres will guzzle power at a ferocious rate, but the impact on wider energy markets will be far more complex than previously thought
28 April 2026
The key energy player faces balancing regional routes, political complexities, and creating a clear strategic vision for energy security
