MercoPress. South Atlantic News Agency

Brazil expects US$ 30bn from offshore oil auctions next October and November

An Oct. 27 sale of production rights in Brazil’s offshore oil areas off the coast of southeast could draw US$ 27 billion in signing bonuses

Brazil expects to collect some US$ 30 billion in signing bonuses this year from three upcoming offshore oil auctions set for October and November, an official revealed this week.

An Oct. 27 sale of production rights in Brazil’s so-called transfer-of-rights area - one of the world’s most promising offshore oil areas off the coast of southeastern Brazil - could draw US$ 27 billion (106 billion reais) in signing bonuses, said Marcio Felix, executive secretary for oil, gas and biofuel at Brazil’s Ministry of Mines and Energy, at a Houston energy conference.

Two other offshore bidding rounds are set for Oct. 10 and Nov. 7 and are expected to generate 10 billion reais (US$ 2.5 billion) to 15 billion reais (US$ 3.8 billion), Felix said.

Brazil’s national energy policy council (CNPE) also plans to set “some strategic guidelines” for Brazil’s refining sector soon, Felix said on the sidelines of the Offshore Technology Conference in Houston.

In a meeting limited to eight government officials, CNPE is set to gather on May 9 to discuss the guidelines. The meeting follows a plan by state-controlled Petrobras to sell eight refineries for roughly US$ 20 billion and focus on its core oil and gas exploration business.

“We welcome this (Petrobras) initiative (to sell refining assets) and Petrobras is independent and can make this decision,” Felix said. “Our concern is how this will (affect) the private sector and how there will be a new market for refining in Brazil.”