Brazil mulls including new blocks in production sharing program

Brazil is studying the inclusion of four new exploration blocks in its open acreage production sharing program, a source close to the subject told BNamericas.

The assets under analysis are dubbed Mogno, in the Santos basin, and Citrino, Ônix and Larimar, in the Campos basin. 

These would join the Ametista block, whose inclusion the government approved last year, in addition to Ágata, Esmeralda, Jade, Turmalina, Tupinambá, Itaimbezinho and Cruzeiro do Sul.

The latter seven did not receive bids in the first open acreage production sharing round that was carried out in December. On the occasion, four areas were taken: Água Marinha, Bumerangue, Norte de Brava and Sudoeste de Sagitário. 

According to Marcelo de Assis, research director at Wood Mackenzie, the new blocks under study are assets with smaller oil and gas prospects. “The best ones have already been auctioned,” he told BNamericas.  

Pedro Zalán, founder of consultancy ZAG Consultoria em Exploração de Petróleo, highlighted the potential of Ametista. He said the block is partially located within the pre-salt polygon, but even in this production sharing area, the prospect is in the post-salt layer. 

The core of the block is dominated by an oil play that, to date, has not been tested in Brazil, as it consists of a construction of Albian-aged carbonate rocks on top of an igneous substratum, that is, a carbonate atoll on top of a volcano. 

He highlighted that the Ametista play is similar to the Ranger discovery, which ExxonMobil made in Guyana, in the Stabroek block, with 500 million barrels of oil in situ. 

“Should Ametista turn out to be what we’re predicting, the chance of oil is enormous,” he told BNamericas. 

The open acreage production sharing program is designed for contracting exploration and production of oil and natural gas in blocks in the pre-salt polygon and other strategic areas. 

In this system, blocks are permanently available and the rounds begin at the request of the registered companies through the submission of a declaration of interest to oil and gas watchdog ANP for one or more available blocks, accompanied by a guarantee of supply.

CONCESSION

Meanwhile, 135 blocks and two areas with marginal accumulations, i.e., areas where there was no oil and/or natural gas production or where production was interrupted due to lack of economic interest, are scheduled to be included in the open acreage concession program this half. 

The list comprises block PRC-T-54 in the Parecis basin, 39 blocks in São Francisco, 40 blocks in Potiguar and 55 blocks in Pelotas, besides the Japlim and Graúna marginal areas, in the Amazonas and Potiguar basins, respectively. 

Currently, 1,030 blocks and 15 marginal areas are under study to be included in the open acreage concession program. 

So far, three rounds have been held by ANP, and the tender for the next one is expected to be published this month. ANP expects to carry out at least one concession and one production sharing open acreage round in 2023.