Special Page - 2nd and 3rd Pre-salt Bidding Rounds
The 2nd and 3rd Pre-salt Bidding Rounds offered areas for oil and natural gas exploration and production under the production sharing agreement.
In the production sharing auctions, the winning companies are those that offer to the Brazilian State, from a settled minimum percentage, the largest portion of the produced oil and natural gas (that is, the largest part of the exceeding oil).
Definition of winners
During the public session, the qualified companies present bids for each offered block. The signature bonuses are settled for both bidding rounds and the profit oil reserved to the Federal Government is the sole criterian to define the winning bidder.
The bids are jugged and ranked according to the descending order of the profit oil share for the Federal Government. The company that offers the highest percentage for the Federal Government is declared the winner.
The profit oil is the oil and/or natural gas production share to be distributed between the Federal Union and the company, according to the criteria defined by the contract, resulting from the difference between the total production volume and the portions related to the cost in oil and the appropriate royalties.
Cost in oil
The cost in oil is the portion of oil and/or natural gas production related to the costs and the investments made by the company during in the execution of the exploration, production and decommissioning activities.
According to the legislation Petrobras has the preemptive right to act as operator in the pre-salt blocks. In a consortium, the operating company is accountable for the conduction and execution of all activities established in the contract.
Petrobras chose to be the operator with 30% share in the block bordering Campo de Sapinhoá (Entorno de Sapinhoá) in the 2nd Bidding Round, and also with 30% share in the blocks of Peroba and Alto de Cabo Frio – Central in the 3rd Bidding Round.
For the blocks in which it exercised the preference to act as operator, Petrobras shall:
a) constitute a consortium with the winning bidder, in case the percentage of the profit oil offered for the Federal Union is equal to the minimum percentage defined by the tender protocol;
b) decide during the public session, within 30 minutes, if it will take part in the consortium with the winning bidder, in case the percentage of the profit oil offered for the Federal Union is higher than the minimum percentage established in the tender protocol.
If Petrobras decides not to join in the consortium, the winning bidder, individually or in a consortium, undertake 100% share in the bid block and indicate the operator and the new share percentages.
In the 2nd Production Sharing Bidding Round three blocks were acquired, from the four that were offered, resulting in...
In the 3rd Production Sharing Bidding Round, three blocks were acquired, from the four that were offered, resulting in...