By Brazil Stock Guide – Brazil raised about R$8.8 billion on Thursday as Petrobras and Shell jointly secured the Federal Government’s minority stakes in the shared pre-salt deposits of Mero and Atapu, in the Santos Basin, in an auction run by state-owned Pré-Sal Petróleo (PPSA) at the B3 exchange. The sale, part of a broader effort to monetize government portfolio assets and reinforce fiscal consolidation, marked the largest single inflow from PPSA’s non-contracted areas to date.
Competitive Bidding
The consortium offered R$7.791 billion for the Federal Government’s 3.5% stake in Mero, representing a 1.90% premium over the minimum price. Atapu’s 0.95% stake fetched R$1 billion, delivering a 16% premium. The Tupi lot drew no bids, though PPSA emphasized that the Federal Government continues to benefit from ongoing commercialization of its production share in the field.
Official Reactions
PPSA CEO Luis Fernando Paroli said the auction crowns one of the strongest years in the company’s history, with PPSA set to deliver roughly R$30 billion in revenues to the Federal Government in 2025 — more than the sum of all revenues generated since its creation until last year. He highlighted solid industry interest, noting that ten companies accessed the data room and seven qualified for the bidding phase.
“Ten companies accessed our data room and seven qualified, demonstrating strong market interest. The successful outcome shows that we priced these areas fairly,” Paroli said. He also emphasized that the lack of bids for Tupi will not create losses for the Federal Government, given PPSA’s ongoing commercialization of its production share.
Renato Dutra, Secretary of Oil and Natural Gas at the Ministry of Mines and Energy, said the auction’s design represented an innovation for Brazil by allowing the Federal Government to monetize its participation while contributing to fiscal consolidation. “This auction guarantees the offering of areas with low exploratory risk and inaugurates a model that will be further improved from here on,” he said.
ANP Director General Artur Watt praised the outcome and noted that the Earn-Out mechanism included in the auction terms will give the Federal Government exposure to future increases in oil prices and higher participation in the shared reservoirs. Representatives from Petrobras and Shell reaffirmed that the acquisition aligns with both companies’ strategies to expand production and replenish reserves over the coming years.
Market Infrastructure Role
Rogério Santana, B3’s Director of Client Relations and Governance in Auctions, said the exchange is proud to support Brazil’s infrastructure agenda by offering a platform that connects high-quality assets with investors.
Petrobras and Shell Positions
In an official note, Petrobras said the acquisitions increase its stake in the Mero shared reservoir from 38.60% to 41.40%, and in Atapu from 65.687% to 66.38%. The company added that the R$6.97 billion to be paid in December 2025 was already contemplated in its financial planning and that the acquired volumes fall within the ±4% margin of its 2026–30 Business Plan. Petrobras said the move aligns fully with its long-term strategy to strengthen reserve replacement in core pre-salt assets.
Shell, Petrobras’s partner in both winning consortia, separately noted that it recently signed concession contracts for four deepwater blocks in the Santos Basin awarded in the ANP’s 5th Permanent Offer Cycle, reinforcing its long-term commitment to Brazil’s offshore sector.
Production Profile
Mero, Tupi and Atapu rank among Brazil’s most productive pre-salt fields. In October, Tupi averaged 780 kbpd, Mero 630 kbpd and Atapu 126 kbpd. Production at Mero is expected to rise further with new FPSOs, including the Alexandre de Gusmão, while additional units planned for both Mero and Tupi will expand basin-wide output over the next several years.
Fiscal Impact and Timeline
The auction will generate R$8.8 billion for the Federal Government, with payment scheduled for December 19. Despite the absence of bids for Tupi, PPSA said it will continue to commercialize the government’s production share from the field. Contracts for the awarded stakes will be signed by March 2026, and production entitlements begin in 2027.