Insight
Brazil's transfer-of-rights surplus DRO: a superlative bid round with a tricky balance between volume and value
Report summary
The transfer-of-rights surplus round is the largest discovered resource opportunity (DRO) offered in 2019 globally. The newcomers will secure immediate access to 10 billion boe of pre-salt deepwater resources. While the output is colossal, the price tag is huge. Signature bonuses surpass US$26 billion, and compensation payments to Petrobras can top another US$23 billion. But with the enormous upfront commitments required, will the transfer-of-rights surplus areas deliver value – or just volume?
Table of contents
- IRR (%) sensitivity to government profit-share bid and Brent for the four surplus PSCs
- What is the original Transfer of Rights contract?
- Why is the round happening now?
- Who will take part?
- What is co-participation?
-
How will the co-participation payment be calculated?
- Production curve comparison for the partial and full development scenarios
- The large upfront cash commitment will limit the government profit share bids
-
Appendix: Assumptions for the partial and full development scenarios
- Atapu
- Búzios
- Itapu
- Sépia
Tables and charts
This report includes 11 images and tables including:
- Atapu
- Itapu
- Búzios
- Sépia
- Transfer of rights volumes, bonuses, co-participation payment and minimum profit share
- Surplus volumes in the four largest TOR areas made available for licensing in 2019
- Búzios surplus summarised cash flow
- Atapu
- Itapu
- Búzios
- Sépia
What's included
This report contains:
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