Oil be back

Oil bids postponed and new regulation to promote mature fields in Brazil.

Following the crash in crude oil prices this year due to the Covid-19 pandemic the CNPE, Brazil’s energy council of the Ministry of Mines, postponed its 2020 17th oil bidding process until 2021.

In this context, the only oil and gas bid that will take place in Brazil in 2020 will be the Open Acreage Programme, in which the ANP, the Brazilian oil and gas regulator, will offer concession agreements for exploratory blocks with marginal accumulations of oil and natural gas. The areas offered were returned to the state as they did not attract offers in previous rounds.

The ANP will make 711 areas available for bids as part of the Open Acreage Programme, which mostly attracts the interests of SMEs. The system allows companies to express interest in exploration areas before the final bid is submitted in an open tender. Press reports suggest that more than 57 companies from 13 different countries are reportedly interested in the bid.

“This bidding system allows us to explore areas without the usual time limitation rounds have.”

ANP senior official.

A source from the institutional relations department of the ANP told us, “This bidding system gives the opportunity for companies to explore areas without the time limitation that traditional rounds have”.

Consequently, and with the purpose of increasing the appeal of mature oil fields – those which are reaching the peak of their production and have been operated for more than 25 years – the ANP is working on the preparation of three new regulations based on: i) the decrease in royalty payments; ii) the improvement of the definition on marginal fields and iii) the simplification of data required from operators.

“The aim is to increase the awareness of the potential that sedimentary basins have”

ANP senior official.

The ANP source added, “It would be simplistic to label the measures implemented by the ANP, always under the guidelines of CNPE, as being specifically focused on foreign companies.” However, the source affirmed that the aim of the new regulations is “to increase the awareness of the potential that sedimentary basins have in the country; to decentralise investments – whether made by national or foreign companies – in the sector and to favour long-term investments which promote the expansion of production and generate employment and income for Brazil.”

All good intentions ANP, let’s hope further postponements won’t ruin the bid!

Important Notice
While the information in this article has been prepared in good faith, no representation, warranty, assurance or undertaking (express or implied) is or will be made, and no responsibility or liability is or will be accepted by Deheza Limited or by its officers, employees or agents in relation to the adequacy, accuracy, completeness or reasonableness of this article, or of any other information (whether written or oral), notice or document supplied or otherwise made available in connection with this article. All and any such responsibility and liability is expressly disclaimed.
This article has been delivered to interested parties for information only. Deheza Limited gives no undertaking to provide the recipient with access to any additional information or to update this article or any additional information, or to correct any inaccuracies in it which may become apparent.

Most recent in Energy

Methanol Marvel

Sinaloa's sustainable industrial revolution in Mexico.

Green horizons

Chile's ENAP and global partners forge the path to hydrogen future. 

Suriname’s oil dream

Total's investment sparks economic transformation.

The green Chile

Chile’s hot renewable energy aspirations...

IBAMA said no!

Brazil’s environment agency stops Petrobras from drilling in the Foz do Amazonas basin.

Batteries not included

With a new operating model, Bolivia dumps the Germans in favour of the Chinese to exploit its lithium reserves.

Petro against petroleum

Petro plans to accelerate Colombia’s energy transition with ban on new exploration contracts.

Renewable leadership

Latin America is aiming for 70% renewable energy but how is it progressing?

Water harvesting

Saint Kitts and Nevis look for rainwater harvesting sites to improve access to water.

Tricky transition

With an economy reliant on fossil fuels, Trinidad and Tobago’s energy transition isn’t easy.