Pre-Salt In Brazil: The Biggest Bidding Round Of All Times

A Resolution from the Brazilian National Board of Energetic Policy (CNPE) authorized the first bidding round for the Pre-Salt area under the production sharing model, which is expected to be held in Brasília in October, 2013.

For this first round, the Libra prospectus will be the only area offered. According to the Brazilian Agency for Oil, Natural Gas and Biofuels (ANP), Libra is estimated to have 26 to 42 billion barrels "in situ", and a recovery factor of around 30%, which represents an amount of recoverable oil that could reach 12 billion barrels.

Under the production sharing regime, that has Petrobras as sole operator, the contractor and the Federal Government share the oil produced (after costs, investments and royalties are deducted according to the contract), differing from the concession...