• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 7 hours Waste-to-Energy Chugging Along
  • 4 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 4 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 38 mins Venezuela continues to sink in misery
  • 6 hours Let's Just Block the Sun, Shall We?
  • 28 mins What will the future hold for nations dependent on high oil prices.
  • 15 hours Regular Gas dropped to $2.21 per gallon today
  • 13 hours Zohr Giant Gas Field Increases Production Six-Fold
  • 13 hours No, The U.S. Is Not A Net Exporter Of Crude Oil
  • 9 hours UK Power and loss of power stations
  • 23 hours $867 billion farm bill passed
  • 21 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 1 day Air-to-Fuels Energy and Cost Calculation
  • 9 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 14 hours Global Economy-Bad Days Are coming
Former Venezuelan General Takes Helm Of OPEC

Former Venezuelan General Takes Helm Of OPEC

Ex-general Manuel Quevedo, Venezuela’s current…

Global Market Turbulence Caps Oil Prices

Global Market Turbulence Caps Oil Prices

Oil prices only rallied modestly…

Brazil’s Oil Cargo Tender Falls Through With No Bids

Oil rig

Brazil received no bids in the first tender for a total 1.63 million barrels of crude extracted from the prolific pre-salt zone, Reuters reports. The state received the oil as payment from operators of fields in the zone and planned to sell it on under three-year contracts. However, interest was lacking, with only Shell registering as a bidder.

Reuters reports that the first cargo auctioned by the state came from three fields in the pre-salt zone, including Libra, Lula, and Sapinhoa. All three are operated by consortia including Big Oil majors such as Shell in Sapinhoa, Lula and Libra, and Total in Libra.

Overall oil production in the pre-salt zone averages 1.4 million barrels, making up more than half of Brazil’s total, averaging 2.6 million bpd. Production from the pre-salt layers is expected to jump to 5 million bpd by 2026.

The lack of interest in the tender was likely a result of changes approved by parliament last week. Under the changes, companies can no longer sell crude at prices lower than those set in a reference range by the energy industry regulator, ANP.

The contracts offered would have obliged the successful bidder to buy Brazil’s total production share from the three fields for three years. The production sharing condition is part of the contracts Brazil awards for the development of pre-salt deposits.

Related: EV Sales To Triple By 2020

Meanwhile, Brazil has scheduled two pre-salt tenders for this year and next, with this year’s to take place on June 7. So far, 16 companies have qualified to take part in the bidding round—a record number.

The country’s energy regulator ANP will offer four blocks in this round: two in the Campos Basin, and two in the Santos Basin. The watchdog has estimated it could attract more than US$900 million in signing bonuses. However, if nobody is buying the crude Brazil receives as payment for the fields, this particular condition might have to be reconsidered.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News