Regulatory News

On Wednesday (November 6), Brazil hosted the bid round for oil exploration blocks with the largest collection ever recorded in the world: R$69.96 billion (US$17.23 billion). The record value was from the auction held by the National Petroleum Agency (ANP) for two pre-salt areas. However, the result frustrated the expectation of the Brazilian government because there was no interest for two other blocks that, if they had been auctioned, it would have raised the total to R$106.5 billion (US$26.17 billion).

Petrobras was the only company that submitted proposals. In Buzios, the largest area, the company has a 90% stake in a partnership with two Chinese oil companies, CNODC and CNOOC. Each of these two companies has a 5% stake. The other block, Itapu, will be explored 100% by the Brazilian state-run company.

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