May 21, 2019

May 21, 2019

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May 20, 2019

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Brazil announces next rounds of bids for the pre-salt in 2019

On April 15, the Brazilian National Petroleum Agency (ANP) scheduled the 6th bidding round for the pre-salt under the partnership agreement to be held on November 7. The hearing to discuss pre-notice and drafts of the production sharing agreements will be held on May 6. Companies interested in participating in the bidding must communicate their intention in the bidding round until September 19.

The 6th bidding round of the pre-salt blocks will have a signing bonus of BRL $7.85 billion (approximately USD $2.1 billion). The bidding round will offer the areas of Aram, Cruzeiro do Sul (former Sudeste de Lula, Sul e Sudoeste de Júpiter), Bumerangue, Sudoeste de Sagitário and Norte de Brava.

The 6th pre-salt bidding round will be the last of three scheduled by the ANP for 2019. The first bid will be the 16th, which is scheduled for October 10. The second bid is scheduled for October 28, and the Brazilian government expects to receive only for the second bid up to BRL $100 billion in bonus (approximately USD $27 billion).

Brazil expects companies such as Exxon Mobil and Royal Dutch Shell to participate in the bidding rounds and raise up to BRL $ 110 billion (approximately USD $29.7 billion). In addition to boosting the oil sector, the Brazilian federal government expects to reduce its budget deficits to 2019 and 2020, which stand at BRL $136 billion (approximately USD $36.7 billion) for 2019, and BRL $124 billion (approximately USD $33.5 billion) for 2020.

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About this Author

Diego Capistrano, Squire PB, Corporate lawyer
Associate

Diego Capistrano works closely with lawyers of the firm's Corporate Practice Group to represent the interests of international clients in matters relating to Latin America.

Prior to joining the firm, Diego was a partner in a leading Brazilian firm, where he represented domestic and international clients in civil litigation and provided advice in commercial transactions in a range of industries. He also has experience advising clients in regulatory and bankruptcy matters.

Diego is a member of the Association of International Petroleum Negotiators and the Brazilian Bar...

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