The results of Brazil's Round 13 were a major disappointment. Just a fraction of the blocks on offer were awarded, mostly in onshore areas, and no bids were placed by leading international E&Ps. This outcome is due primarily to numerous above-ground problems, particularly the ANP's failure to address industry concerns regarding onerous local content rules.
Just 37 of 266 exploration blocks on offer attracted bids, and only two were offshore. The US$31 million signature bonus fell far below government expectations of raising around US$500 million. There was little competition, with no more than eight blocks receiving more than one offer, mainly in the onshore Parnaiba and Recôncavo Basins. Contributing to the round's failure was the decision by Petrobras not to participate, the first time the Brazilian NOC has not picked up acreage in a domestic round.
This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.
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