June 13, 2019 / 9:29 PM / 4 days ago

Brazil postpones bidding round for major oil area to November 6

FILE PHOTO: People walk near the booth of the ANP (National Petroleum Agency) at the Rio Oil and Gas Expo and Conference in Rio de Janeiro, Brazil September 24, 2018. REUTERS/Sergio Moraes

RIO DE JANEIRO (Reuters) - Brazil’s oil regulator ANP announced on Thursday preliminary rules for a major oil auction in the pre-salt area in the Santos basin and postponed the bidding round to Nov. 6 from Oct. 28.

The preliminary rules will be in public consultation until July 3, according to ANP. A public hearing is expected to take place in Rio de Janeiro on July 5.

The auction comprises production sharing contracts for a total area of 1,385 square kilometers. The prospects are areas near the fields included in the Transfer-of-Rights contract signed by the government with local company Petrobras.

Contracts are expected to be signed by March 2020, said ANP.

Petrobras was granted in 2010 the right to explore up to 5 billion barrels of oil equivalent (BOE) in the those pre-salt areas. As volumes discovered were significantly larger, the government is auctioning the surplus.

Reporting by Marta Nogueira; Writing by Gabriela Mello; Editing by Phil Berlowitz

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