By Brazil Stock Guide – Brazil’s Environment Ministry has signed joint approvals with the Ministry of Mines and Energy to release offshore exploration blocks in the Campos, Santos and Espírito Santo basins for the next production-sharing auction, removing pending environmental hurdles for areas in the prolific pre-salt polygon.
At least 16 pre-salt blocks had been awaiting environmental clearance, according to Agência iNFRA. In a statement, the Mines and Energy Ministry said the measure represents an “authorization to include 18 new blocks in the Permanent Production-Sharing Offer (OPP).”
The additional areas would be added to eight blocks already listed in the tender, potentially enabling a round with 26 blocks available to receive expressions of interest and subsequent bids from qualified oil companies.
The National Agency of Petroleum, Natural Gas and Biofuels (ANP) recently included the following pre-salt polygon blocks in the OPP notice, now cleared by the Environment Ministry: Cruzeiro do Sul, Rubi, Granada, Cerussita, Aragonita, Rodocrosita, Malaquita, Opala, Quartzo, Calcedônia, Siderita, Hematita, Limonita, Magnetita, Calcita, Dolomita and Azurita.
The Mines and Energy Ministry estimates the auction could generate as much as 3.2 billion reais ($) in signing bonuses. Over the life of the contracts, projected government revenue could reach 1.6 trillion reais, alongside roughly 1.4 trillion reais in investments.
For the upcoming offer cycle, ANP waived the public consultation phase, citing the absence of significant changes to bidding rules beyond the inclusion of the new blocks.