UPDATE 1-Brazil to hold oil rights auction in 1st half of 2015

lunes 15 de septiembre de 2014 14:05 GYT
 

(Adds details of planned auction, industry complaints, auction background)

By Jeb Blount and Marta Nogueira

RIO DE JANEIRO, Sept 15 (Reuters) - Brazil will hold a 13th round of oil rights auctions in the first half of next year in a sale that will include new areas in the country's promising Eastern Margin offshore region, a senior mines and energy ministry official said on Monday.

The auction plan, which had been presented as a possibility by the country's oil regulator, the ANP, has now been approved by Brazilian President Dilma Rousseff, Marco Antonio Martins, the undersecretary in charge of the oil industry at the ministry, said at an industry event in Rio de Janeiro.

The sale will be the first auction of concession rights since 2013 and only the third since 2008, when the government halted annual oil-rights auctions to re-write its oil law to boost control of new "subsalt" resources near Rio de Janeiro. Subsalt resources refer to oil trapped by a layer of mineral salts deep beneath the seabed.

The Eastern Margin, which runs along much of Brazil's central coast, contains some of the country's most-promising frontier exploration areas and is home to some large recente discoveries, Martins said.

Rousseff's backing of next year's planned sale follows complaints from industry executives and officials about the lack of recent oil rights auctions, which they said had reduced activity by foreign and private-sector Brazilian companies.

The same officials have said the dominance of state-run Petroleo Brasileiro SA, which has been favored under the new oil law, raised the risks faced in Brazil's oil equipment and service industry.

Financial difficulties at Petrobras, as the state oil company is known, have trickled down to the equipment and service industry, said Joao Carlos de Luca, head of Brazil's IBP oil industry association.   Continuación...