Oil veterans win big in Brazil’s latest oil and gas round

Energy players including Petrobras, Shell and Chevron have scooped up key acreage in Brazil’s latest offshore oil and gas bid round, Reuters reported on Wednesday.

Brazil’s regulator National Agency for Petroleum, Natural Gas and Biofuels handed out 192 licenses from its 600 blocks on offer, which represents returns of around USD 102 million for the state.

Most of the concessions are located on Brazil’s deepwater Pelotas Basin located along Brazil’s southern coast.

Brazilian NOC Petrobras took 29 blocks on the basin as the operator alongside its partner British oil giant Shell, three of which China National Offshore Oil Corporation participated in.

Petrobras said the new blocks will increase its exploration acreage by more than 20,000 square kilometres to around 50,000 square kilometres.

US oil giant Chevron also participated, taking on 15 blocks on the same basin.

Local newcomer Elysian – created in August 2023 and based in Minas Gerais state – took on 122 blocks spread across the Potiguar, Espirito Santo and Sergipe Alagoas basins.

In the same round, E&P independent Karoon, China National Offshore Oil Corporation and Norwegian NOC Equinor also won blocks on the prolific Santos Basin.

The regulator also announced that Brazil’s second open acreage production sharing auction resulted in one acquisition, with energy giant BP taking on the Tupinambá play in the Santos basin.

Brazil is South America’s top oil producer.