Global oil majors such as France’s Total, Qatar Petroleum, and Malaysia’s Petronas have agreed to pay a signing bonus of nearly 1 billion for the exploration rights in an offshore block near Brazil’s coveted offshore pre-salt region.
Total will operate the Brazil block with a 40 percent interest, alongside Qatar Petroleum with a 40 percent interest and Petronas with 20 percent interest. The consortium plans to drill the first exploration well in 2021.
During the recently held 16th oil concession bidding rounds in Brazil, other oil giants such as Total, Shell, ExxonMobil, Chevron, Petrobras, Petronas, and Repsol also won blocks as operators in the Campos basin. According to regulators in Brazil, 12 out of the 36 blocks were awarded to 10 major companies who bid for the blocks.
It is estimated that the bidding rounds raised around $2.7 billion in signing bonuses.
The highest bid in the auction was made for block C-M-541 in the Campos basin by the winning consortium of Total, Petronas, and Qatar Petroleum.
Saad Sherida Al Kaabi, CEO of Qatar Petroleum told the media that, “We are pleased to have won these offshore exploration blocks. This successful result is the fourth of its kind, which further strengthen Qatar Petroleum’s footprint in Brazil, marking yet another successful step towards realizing our international growth strategy, and turning Brazil into a cornerstone of our international portfolio.”
He added, “I would like to take this opportunity to thank the Brazilian authorities for their transparent and efficient tender process, and all our partners for their excellent cooperation in achieving this result.”
Qatar Petroleum also won the exploration rights for blocks 659 and 713 in the Campos basin as part of a consortium comprising affiliates of Shell and Chevron. While Shell will be the operator with a 40 percent stake, Qatar Petroleum has an interest of 40 percent and Chevron has 20 percent.