China’s CNOOC given more time to explore Brazilian offshore block

Brazilian oil and gas regulator ANP has approved a request by China’s CNOOC for a nine-month  to extension of the exploration term for block ES-M-592 in the Espírito Santo basin, off the country’s southeast coast.

The new deadline for the company to complete the minimum exploration program in the block is October 29, 2025. 

The extension request was based on ANP resolution 815/2020, which allows for the postponement of the exploratory period due to the impacts of the COVID-19 pandemic.

CNOOC acquired block ES-M-592 in the regulatory agency’s 14th concession round, held in 2017. 

The offshore asset covers 720km2, belongs to the SES-AP2 sector and is a conventional reservoir.

The exploration phase is the first of the E&P contracts and begins when the contract is signed. In this phase, the areas explored are called blocks and the companies carry out studies and activities (such as seismic surveys and well drilling) to detect the presence of oil and/or natural gas in sufficient quantity to make its extraction economically viable. 

If so, the company submits a declaration of commerciality to the ANP and the block (or part of it) becomes a producing field, beginning the production phase. If not, the company can return the block (or part of it) to the ANP.