By Brazil Stock Guide – Petrobras (B3: PETR4; NYSE: PBR) secured two of seven blocks offered on Wednesday (Oct 22) by Brazil’s oil regulator ANP, in a pre-salt auction under the production-sharing regime. The state-controlled producer took full ownership of the Citrino block and won the Jaspe area as operator with a 60% stake, alongside Equinor (NYSE: EQNR), which holds 40%.
Of the seven blocks offered, five were awarded, generating R$ 103.7 million (US$ 20 million) in signature bonuses and R$ 451.5 million (US$ 87 million) in minimum exploration investments. The Santos and Campos basins remain at the core of Brazil’s oil expansion, attracting bids mainly for mature, infrastructure-ready zones.
Production-sharing in focus
The round is part of the 3rd Cycle of the Permanent Production-Sharing Offer (OPP), which allows blocks to remain continuously available for bidding. Under this regime, companies share a portion of output with the federal government, unlike the concession model that relies on royalties.
Petrobras’s wins reaffirm its dominance in deepwater operations, while Equinor’s participation underlines the continued partnership between Brazilian and Norwegian players. Two blocks — Ônix and Larimar — received no bids, reflecting cautious capital allocation and cost concerns for more complex prospects.
Next steps
Contracts are expected to be signed by year-end 2025, with seismic surveys and initial drilling likely from 2026 onward. New discoveries could revive output growth in the Campos Basin, which has lost ground to the Santos pre-salt cluster.