Brazil extends exploration terms

Brazil's oil and gas regulator ANP has authorized the signing of a two-year extension for an eloration program related to the concession contracts for blocks acquired in the 11th and 12th bidding rounds in 2013.

The main reasons for the decision were the sharp oil price reduction in the years that followed the auctions, which led concessionaires to postpone work, and difficulties in obtaining environmental permits for the exploration campaigns.

Among the blocks are the ones acquired by French oil company Total, which has had its permit request to drill in the Foz do Amazonas basin rejected by environmental regulator Ibama.

"In the absence of an additional exploration term there will be large-scale restitution of concession contracts in the exploration phase," ANP said.

The agency estimates that the new resolution could unlock investments in the order of 5bn reais (US$1.4bn).