Brazil watchdog approves pre-salt open acreage tender draft

Brazil’s oil and gas watchdog ANP has approved the draft of the tender and contracts for the production sharing open acreage program. 

The documents will be submitted to the mines and energy ministry for approval and will then undergo public consultation and hearings.

On offer are 14 pre-salt blocks: Ágata, Esmeralda, Jade, Turmalina, Ametista, Amazonita, Citrino, Itaimbezinho, Jaspe, Larimar, Mogno, Ônix, Safira Leste and Safira Oeste. 

Federal oil firm Petrobras has told the national energy policy council CNPE that it is interested in the right of first refusal over the Jaspe block. 

This means that the firm can be the operator of the asset even if it does not submit the best offer in the ANP auction. 

In the open acreage system, there is a continuous offer of exploration blocks and areas with marginal accumulations located in any onshore or offshore basins.

Companies must register interest in one or more areas with ANP before a bidding round can take place. 

There are currently two types of open acreage, one involving concession areas and other production sharing assets. 

CLOUDY OUTLOOK

Production sharing is the regulatory contracting regime of the areas deemed strategic for the country. They are located within the so-called pre-salt polygon, off Brazil’s southeast coast in the Santos and Campos basins. 

During the latest production sharing bidding round, held by ANP last December, only one of the six blocks offered was taken – Tupinambá by BP.

The return of another production sharing exploration block to the regulatory agency in July reflects the lack of confidence in what remains of the country’s pre-salt potential.

Experts recently heard by BNamericas believe the best pre-salt assets have already been auctioned and see relatively high risks in some of those currently on offer. 

CHANGES

The ANP has proposed a series of improvements to the public notice and contract for the production sharing open acreage program.

Among the changes are adjustments to local content guidelines, the insurance-guarantee models and the system for complying with the minimum exploratory program, which no longer requires the drilling of an exploratory well and now also provides for the possibility of carrying out 3D seismic activities and 3D seismic reprocessing.

The regulatory agency also suggests excluding the payment of participation fees and sample data and the possibility of bidders submitting bid guarantees without a declaration of interest. 

Another proposal is the inclusion of provisions to incorporate new industry practices aimed at reducing greenhouse gas emissions.