Very usefull links


News links




Dow Jones

Oil price



Views and News





Brazil calls auction for 14.4 million barrels of oil cargo, seeks to export oil in a year




By Reuters

Petroleumworld 08 03 2018

Brazil's government will seek to sell 14.4 million barrels of oil cargo this month, while the state company managing the development of the pre-salt oil exploration aims to export its own oil in a year's time, the firm's head said on Thursday.

The tender of oil cargo, at an auction set for Aug. 31, follows a failed auction in May, in which the government received no bids.

On offer is the government's share of production from companies producing in deepwater pre-salt fields. Brazilian rules dictate that companies vying for stakes in the prolific pre-salt must offer a share of oil production to the government.

Oil majors have spent heavily on recent oil auctions in Brazil, Latin America's top producer, to lock in access to the pre-salt layer, where billions of barrels of oil are trapped under a thick layer of salt beneath the ocean floor.

While Brazil needs to sell its own share of the oil to companies currently, state-run Pre-Sal Petroleo SA (PPSA) hopes to become an oil exporter in its own right in about a year, Chief Executive Ibsen Flores told Reuters in an interview.

Of the 14.4 million barrels on offer this month, 10.6 million barrels will come from the Mero field, while 600,000 will come from Sapinhoa field. Another 3.2 million barrels will come from the Lula field. All fields are located in the Santos offshore basin. Each lot will be offered individually.

The failed May auction came after a new law barred the sale of the government's oil below reference prices set by oil regulator ANP.

Royal Dutch Shell Plc, which has stakes in all three offshore fields from which the oil at auction was produced, was the only company registered to participate in the May auction.

So far, the government has sold three cargoes of oil, all this year, including two cargoes of 500,000 barrels and one of 250,000 barrels, in addition to a natural gas contract of 230,000 cubic meters per day. State-controlled oil company Petroleo Brasileiro SA bought them all.


Reporting by Marta Nogueira Writing by Alexandra Alper, Editing by Rosalba O'Brien from Reuters. 08 02 2018

We invite all our readers to share with us
their views and comments about this article.

Write to

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to:

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1

November 13 - 15, 2018.

Gubkin University, Moscow
SPE Student Chapter









Editor & Publisher:Elio Ohep/
Contact Email:

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld   / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.