First auction for pre-salt layer in Brazil scheduled for 21 October

5 September 2013

The first auction for exploration and production of oil and gas in the pre-salt layer off the coast of Brazil, based on production sharing deals, has been set for 21 October, the Brazilian Nation Oil, Natural Gas and Biofuel Agency (ANP) said.

According to a 123-page document that was made public, the successful company will have to pay a bonus of 15 billion reals (US$6.353 billion) and companies interested in the auction will pay a non-refundable participation fee to the ANP of 2 million reals (US$850,000).

The deadline for paying the participation fee and handing in documents for interested companies to qualify is 18 September, and the production sharing contract is scheduled to be signed in November.

The area to be auctioned off covers around 1,500 square kilometres and the winning company will have four years to establish exploration, which period may be extended. (macauhub)