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President Dilma Roussef authorizes 11th Oil and Gas Bid Round in Brazil

Brazil’s President Dilma Roussef recently authorized the 11th Oil and Gas Bid Round. This Bid Round will highlight the Equatorial Margin, formed by the Foz do Amazonas, Pará-Maranhão, Barreirinhas, Ceará, and Potiguar basins, where recent discoveries have been announced.

Brazil’s President Dilma Roussef recently authorized the 11th Oil and Gas Bid Round

For the 11th Bid Round, the government initially announced that 172 blocks would be offered, divided into 17 sectors and nine (9) sedimentary basins: Barreirinhas, Ceará, Parnaíba, Espírito Santo, Foz do Amazonas, Pará-Maranhão, Potiguar, Recôncavo and Sergipe-Alagoas.

However, the Brazilian Federal Government has more recently decided to offer an additional 117 exploration blocks in the 11th Bidding Round, including an additional 65 blocks in the shallow and deep waters of the Foz do Amazonas Basin, 36 blocks in the Tucano Sul Basin, 10 blocks in the Pernambuco-Paraíba Basin, and 6 deep water blocks in the Espírito Santo Basin. With this change, there will now be a total of 279 exploration blocks put up for bidding, covering a total area of 155,712 km². The 11th Bid Round will use the concession contract model which has been in force in Brazil since 1997, and the local content rules used for the 2008 Bid Round will also be applicable.

ANP, the Brazilian National Hydrocarbons Agency, has published a calendar for the Bid Rounds that contemplates a March 26, 2013 deadline for submitting the required documents for an expression of interest, May 14-15 for submitting a bid, and August 2013 for execution of the awarded concession contracts. Dates for the Bid Round are subject to change by the ANP.

2013 is shaping up to be an active year for upstream Bid Rounds in Brazil. A Bid Round for non-conventional oil and gas is expected for later this year, as well as an additional Bid Round under the new production sharing contracts for the pre-salt layer.

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