PETROBRAS: We bought seven blocks at the ANP auction

PETROBRAS: We bought seven blocks at the ANP auction

We acquired seven blocks in the 14th Round of Bids in the concession system, held by the National Petroleum Agency (ANP), six of which offshore and one onshore. We will be the operator of the seven blocks. We will be the operators of the offshore blocks, with a 50 percent interest, in partnership with ExxonMobil, which holds the other 50 percent.

The aggregate amount of the signing bonus we must pay is R$1.8 billion. This amount represents 0.8 percent of the investments foreseen in the 2017-2021 Business and Management Plan, and will be re-managed within the budget currently approved under the 2017-2021 BMP.

In addition to the signing bonus, another auction judgment criterion was the Minimum Exploration Program (MEP) to be applied in the block, expressed in Work Units (WUs) – which cover the number of wells to be drilled, as well as the seismic activity to be employed during the exploratory activity.

The table below summarizes the result of our participation in the 14th ANP Bid Round:

Block

Sedimentary Basin

Petrobras Bonus (R$)

PB MEP (WUs)

C-M-210

Campos

6,488,605.05

45

C-M-277

Campos

20,488,638.55

92

C-M-344

Campos

15,488,672.05

42.5

C-M-346

Campos

1,120,488,673.05

1062

C-M-411

Campos

600,488,705.55

562

C-M-413

Campos

32,488,706.55

75

PAR T-175

Paraná

1,690,771.75

1000

Total: 07 blocks

1,797,622,772.55

R$2,878.5

Strategy

We acted selectively in the auction, reflecting our strategic vision and marking the beginning of the recomposition of our exploratory portfolio, while at the same time seeking to recover the reserve/production ratio and to ensure the sustainability of our future oil and gas production. In addition, our performance in competitive consortia is aligned with the strategic objective of strengthening partnerships, sharing risks, combining technical and technological competencies, and capturing synergies.

“The acquisition of these blocks reflects our comprehensive portfolio vision, which is focused on recovering our reserve/production ratio. Our objective is to ensure the future and sustainable production of the company,” said our CEO, Pedro Parente, who attended the auction. Also attending was Exploration and Production Director Solange Guedes.

In the Campos Basin, we acquired, in partnership with ExxonMobil, the six blocks of the SC-AP3 sector, located in deep waters. Along with ExxonMobil, we identified great geological potential in these areas, a fact that supported our competitive bids. This was the sector that generated the most competition in the auction, attracting the interest of six other companies (Shell, Repsol, Total, BP, Karoon, and CNOOC). A total of 13 bids were submitted for the blocks in this sector. The consortium with ExxonMobil in the Campos Basin represents the beginning of a promising partnership and will enable the capturing of synergies through the technical excellence of the two companies.

In the Paraná Basin, we acquired 100 percent of an onshore block in a new exploratory frontier area, with the expectation of discovering accumulations of natural gas near the Brazil-Bolivia gas pipeline. The block is in the central portion of the basin, near the most developed region of South America, with high demand for energy and inserted in the country’s largest gas-consuming pole.

After today’s auction, there will be the winning bidders’ qualification stage and subsequent signing of the contracts.

SOURCE:  http://www.petrobras.com.br/en/news/we-bought-seven-blocks-at-the-anp-auction.htm

Leave a Reply

Your email address will not be published. Required fields are marked *