Petrobras Equinor Dominate Brazil Pre-Salt Auction Securing Key Offshore Blocks

Brazil's state-run oil company Petrobras and Norway's Equinor emerged as the main winners in a recent auction for oil blocks in Brazil's offshore pre-salt region, acquiring one block each and partnering to develop a third. The pre-salt region, known for its extensive deepwater oil reserves beneath a thick salt layer, remains a critical area for Brazil's oil production. While major oil companies like Shell and BP did not participate in the auction, citing capital allocation strategies, firms including Australia's Karoon Energy and a Chinese consortium of CNOOC and Sinopec also secured blocks. Petrobras and Equinor's consortium won the Jaspe block with the highest bid, offering to cede 32.9% of profit oil to the Brazilian government, highlighting their commitment to maintaining a leading role in the Campos Basin pre-salt area. The auction, organized by Brazil's oil regulator ANP, used fixed signing bonuses and production-sharing offers to allocate blocks, reflecting renewed interest in Brazil's energy potential following recent discoveries. Additionally, Petrobras secured a port terminal concession in Rio de Janeiro to support offshore oil and gas logistics, underscoring its ongoing investment in infrastructure related to oil exploration and production.