Second take in Brazil’s Surplus DRO licensing: borderline economics may limit interest again
On 17 December 2021, Brazil will relicense the surplus volumes in Atapu and Sépia. The two PSCs failed to attract bids in 2019. The 2021 licensing round terms offer two clear improvements compared to the previous round: reduced uncertainty and reduced entry costs. Still, it is an opportunity for consortia or those with deep pockets – upfront costs will sum to US$10.6 billion to access 1.6 billion barrels of 2P oil reserves.