Brazil presalt concession winner will have to pay $7.45 billion bonus

7/5/2013

Brazil presalt concession winner will have to pay $7.45 billion bonus

BY JEFFERY.T. LEWIS

RIO DE JANEIRO -- The consortium that wins the first auction of exploration concession contracts for Brazil's so called presalt oil deposits will have to pay the Brazilian government a signing "bonus" of $6.6 billion, the country's National Petroleum Agency (ANP) said.

The ANP plans to auction off Libra, Brazil's largest oil discovery with recoverable reserves estimated at between 8 billion and 12 billion barrels of crude, on October 21. The auction will be the country's first of a presalt prospect under new production sharing agreements.

The government will receive a minimum volume of 40% of the oil after development costs and Petrobras must have a minimum 30% stake in the winning consortium, according to the terms of the auction.

The presalt is an area off Brazil's coast where billions of barrels of crude oil and natural gas were discovered trapped in deep waters under a layer of salt.

Dow Jones Newswires

Related News ///

FROM THE ARCHIVE ///

Comments ///

comments powered by Disqus