Shell earns three of six presalt blocks awarded in Brazil auction

Shell earns three of six presalt blocks awarded in Brazil auction

Six of eight blocks on offer were awarded in the latest two rounds of Brazil’s offshore oil and gas rights auctions, it was revealed on Monday.

Anglo-Dutch giant Shell – along with its production partners – emerged as the big winner with three blocks from the auction, which was held on October 27.

These were the second and third rounds of presalt auctions. As production-sharing contract rounds, these auctions were not about direct bidding for assets but more about the government [profit-shar rates each consortium was offering.

A total of $31bn in investment was confirmed for development of the six blocks. And $1.9bn was generated in signature bonuses.

Other successful majors at the auctions were Norway’s Statoil and Brazil’s state oil firm Petrobras, which under law has the first option to act as operator in any of the presalt blocks.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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