Brazil's 6th pre-salt round - what's on offer?

Brazil will hold its 6th round on November 7, offering production-sharing contracts for exploration and production in areas within the pre-salt polygon.

The auction will offer five blocks, all of them located in the country's two most productive basins, Santos and Campos, and with high chances of holding pre-salt reservoirs, according to regulator ANP. Winning bids will be chosen considering the highest production profit offered to the government in the form of crude oil.

BNamericas takes a look at the areas being offered in the tender:

Aram block

Located in the central part of the Santos basin in water depths of 1,800m, this block is close to the Carcará discovery, which holds estimated recoverable oil reserves of more than 2Bb. This will be the most expensive block in the auction, with a 5.05bn-real (US$1.3bn) signature bonus payment and 24.53% minimum profit oil offered to the government. State-run firm Petrobras exercised its pre-emption right to secure the operatorship of the area with a 30% stake.

Bumerangue block

The area is in the southern part of the Santos basin in water depths of 2,300m. According to regulator ANP, although no well has yet been drilled in this block, seismic data indicates the presence of hydrocarbons. The signature bonus payment amounts to 550mn reais and the minimum amount of profit oil accepted by the government is 26.88%.

Cruzeiro do Sul block

The block lies in the central part of the Santos basin in water depths of 2,200m. It is close to the Lula field, Brazil's most productive area, and the Júpiter discovery, in the BM-S-24 block. The required signature bonus payment totals 1.15bn reais and the minimum amount of profit oil accepted by the government is 22.87%.

Sudoeste de Sagitário block

Also in the center of the Santos basin, this block is located at a depth of 1,850m. The area lies near the Sagitário discovery and the Norte de Carcará and Uirapuru blocks, auctioned in the country's 2017 and 2018 pre-salt rounds. The signature bonus is the smallest in the tender, at 500mn reais, and the minimum amount of profit oil accepted by the government is 26.09%. Petrobras exercised its pre-emption right to secure the operatorship of the area with a 30% stake.

Norte de Brava block

The only area on offer in the Campos basin is located at water depths between 200m and 800m, near the producing fields Marlim Leste, Marlim, Voador, Viola, Moreia and Albacora. The signature bonus required is 600mn reais and the minimum amount of profit oil accepted by the government is 36.98%, the highest in the tender. Petrobras also exercised its pre-emption right to secure the operatorship of the area with a 30% stake.