Regulatory News

President Dilma Rousseff authorized two new bid rounds of oil and gas exploration blocks in the coming year. The first is scheduled for May, with the auction of 174 fields - 87 onshore and 87 offshore, above the salt layer. The second bid round, six months after the first, will include blocks located in the subsalt. The announcement reduces the pressure on the government from foreign companies threatening to leave Brazil due to the lack of a sign for new investments.

However, the auctions will be conducted only if Congress passes a bill creating a new regulatory framework for the oil sector in the country. The last round of bidding took place in 2008. Since then, new offerings were suspended and waiting for a definition of the new model of oil exploration, which has been under discussion in Congress since 2009.

© 2007 CRE Brazil - All Rights Reserved.