Insight
Brazil in focus: competition converges on pre-salt acreage in upcoming 2018 licensing rounds
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Report summary
Continuing with its aggressive licensing push, Brazil has launched two high-profile bid rounds closing in late-March (Round 15) and early-June (PSC Round 4). The rounds offer 40,000 km2 of prime offshore acreage, including 22 pre-salt prone blocks. As with previous pre-salt rounds, the size of the prize is huge. Brazil's upstream regulator, the ANP, has identified 35 billion boe of prospective resources in-place in the Campos and Santos acreage. We expect the pre-salt blocks of Round 15 to drive most of the interest given the fiscal advantages of the concession regime over the profit-sharing terms of PSC Round 4.
Table of contents
- Brazil offers 40,000 km 2 of high-graded offshore exploration acreage
- Vast resource potential at high prices
- Bidding on profit share rates has a permanent impact on development economics
- Strong interest evident, competitive bidding expected
- Conclusion
- Appendix 1: Fiscal and E&A assumptions for full-cycle economic analysis
- Appendix 2: Companies registered to participate in Round 15
Tables and charts
This report includes the following images and tables:
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Concession Round 15 and PSC Round 4 acreage mapBlocks on offer and awarded per roundOver 16,000 km2 of pre-salt prone acreage offered in Campos and Santos basins
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Santos and Campos basin signature bonuses (outside the pre-salt polygon, these are the minimum bids)Top 10 signature bonuses for Campos and Santos blocksGlobal conventional costs incurred by the Majors and NOCs (2016)Ratio of winning bid to minimum bid in Round 14 offshore blocksFull-cycle company IRR as a function of profit share bid rates and oil pricesStretch case field development assumptionsThe stretch-case field adds 3 percentage points to full-cycle IRRCompanies registered to participate in Round 15
What's included
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