Petrobras, China National Offshore Oil Corporation (CNOOC) and Petrochina emerged as the major winners in the latest oil auction conducted by Brazil's Pre-Sal Petroleo (PPSA), with expectations of substantial revenue generation, reported Reuters.
The state-controlled oil giant Petrobras successfully bid for a total of 14.5mbbl, securing 12mbbl from the Mero field and an additional 2.5 million from the Buzios field.
Chinese oil companies CNOOC and Petrochina also secured large volumes, with CNOOC obtaining 12mbbl and Petrochina 11mbbl, both from the Mero field.
Under the Brazilian legal framework, oil producers operating under sharing contracts in the pre-salt oil fields are obligated to allocate a share of their output to the government.
PPSA, the state-run entity, is tasked with the commercialisation of this oil.
PPSA's interim president, Tabita Loureiro, anticipates that the auction will generate revenue of around 17bn reais ($3.01bn), surpassing the initial estimates of 15bn reais.
Loureiro expressed confidence in the auction's capacity to deliver "extraordinary results" for the Brazilian economy.
In related news from the Brazilian oil and gas sector, the country's prosecutors are exerting pressure on regulators regarding Petrobras' licence to drill near the Amazon's mouth.
The prosecutors, who recommended that environmental agency Ibama deny drilling permits to Petrobras near the Amazon River's mouth, have sought a response from Ibama, reported Reuters.
In May 2023, Ibama rejected Petrobras' application for an offshore drilling licence in the Foz de Amazonas region offshore Amapa state.
The oil company filed an appeal shortly thereafter.
In June 2024, Ibama president Rodrigo Agostinho indicated that a decision on the matter is expected imminently.
Last August, prosecutors advised Ibama to reject the appeal due to potential risks to local indigenous communities and the environment.
In the notice, the prosecutors informed Agostinho that failing to respond to their recommendations within the specified time frame could lead to a prison sentence of one to three years and a fine.
