Brazil nets $1.7 bln in fifth pre-salt auction

Brazil’s National Agency of Petroleum, Natural Gas and Biofuels on Friday awarded four offshore blocks under its Fifth Pre-Salt Bidding Round, with total signing bonuses amounting to USD 1.695 billion, international media reported.

Shell and Chevron partnered to take the largest block on offer, Saturno, which contains an estimated 8.3 billion barrels of unrisked reserves, while the Titã block, said to contain 3.9 billion barrels of unrisked reserves, was granted to partners ExxonMobil and Qatar Petroleum.

BP joined Colombian NOC Ecopetrol and China National Offshore Oil Corporation in winning the Pau-Brasil concession, also estimated to hold 3.9 billion in unrisked reserves. The block is BP’s first operated pre-salt asset in Brazil.

The last area auctioned, Sudoeste de Tartaruga Verde, went to Brazilian NOC Petrobras, which already operates the adjacent Tartaruga Verde block. The company was the only bidder for the block, which contains an estimated 1.29 billion barrels of oil with an API of 27 degrees.

The details of each winning proposal are below:
1. Saturno PSC – Shell (operator, 50%), Chevron (50%)
Royalty on profit oil: 70.2%
Signing bonus: BRL 3.125 million (USD 777 million)

2. Titã PSC – ExxonMobil (operator, 64%), Qatar Petroleum (36%)
Royalty on profit oil: 23.49%
Signing bonus: BRL 3.125 million (USD 777 million)

3. Pau-Brasil concession agreement – BP (operator, 50%), China National Offshore Oil Corporation (30%), Ecopetrol (20%)
Royalty on profit oil: 63.79%
Signing bonus: BRL 500 million (USD 124 million)

4. Sudoeste de Tartaruga Verde concession agreement – Petrobras (operator, 100%)
Royalty on profit oil: 10.01%
Signing bonus: BRL 70 million (USD 17.4 million)