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A Brazilian court suspended the oil licensing round Tuesday
Petroleumworld
RIO
Petroleumworld.com 11 28 06After 38 blocks were awarded in three round sessions in the morning, federal court in Brasília suspended the 8th hydrocarbons exploration licensing round Tuesday, hydrocarbons regulator ANP president Haroldo Lima told reporters.
ANP had awarded in the morning sessions, 38 of the 58 blocks offered. ANP lawyers are appealing overnight to overturn the auction before Wednesday.
The court rule positive on a suit filed by the association of Brazil's oil company Petrobras engineers (AEPET), which claimed the auction rules hurt Petrobras , specifically a rule limiting operators from winning various blocks in one exploration area and therefore hurting commercial interest of Petrobras.
ANP is confident that the auction could be resume on wednesday, said Lima.
"The rules have been known for months," said Lima. "Why question them now?"
"The rule limiting the number of blocks an operator can have is in favor of development and diversifying the number of companies operating in the country," said Lima."We decided to impose this restriction after the 7th round [in 2005], when one foreign company won the right to explore blocks with a combined area the size of England." Lima added.
"This suspension is bad for the country because it gives companies the impression Brazil's institutions are unstable," Lima said."The auction was considered a... success, with new entrants into Brazil's market coming from India, Japan, Scandinavia. How will we now convince companies to bid in the ninth round?" he added.
Italian oil company Eni , Norway's Norsk Hydro, Spain's Repsol-YPF and Brazil's national oil company, and Petrobras, were the leading winners.
Indian company ONGC Videsh won a bid for a block in the new frontier area, with an offer of 1.5 million reals ($691,000).
ANP Brazil's National Petroleum Agency is offering 284 areas totaling 101,600 square kilometers (39,227 square miles) in 14 areas, including 12 offshore sites.
Petroleumworld 28 11 06
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