Brazil raises 210 million reais with Atapu oil auction

By Ministry of Mines and Energy ( MME )

January 17, 2023

This is a machine translation of the press release originally published in Portuguese 

The Ministry of Mines and Energy (MME) promoted, through Pré-Sal Petróleo SA ( PPSA ), this Tuesday (17/01), an auction to market the first load of oil from the Union arising from the production sharing contract from Campo de Atapu, in the pre-salt layer.

The Union should raise around R$ 210 million for the National Treasury when the shipment of 500,000 barrels becomes available in the second two months.

Minister of Mines and Energy Alexandre Silveira is expected to discuss with President Lula alternatives for better allocation of resources produced by the pre-salt production sharing regime.

“These large-scale resources are strategic for Brazil. We really need to carry out a better sharing of this wealth, both for present and future generations, generating opportunities and improving the quality of life of Brazilians and Brazilians”, said the minister.

Galp Energia Brasil was the winner of the process, offering the highest price for oil in the Union, based on the Reference Price established for Atapu oil by the National Agency of Petroleum, Natural Gas and Biofuels ( ANP ). Payment is made based on the reference price of the month in which the cargo is delivered to the buyer.

Ten companies that already operate in the pre-salt layer were invited to participate, and four of them were qualified and sent proposals. All price offers were opened in real time in a meeting held between PPSA and the participating companies, accompanied by MME representatives.

Galp Energia Brasil was also the winner of the process carried out by PPSA, in August 2022, for the sale of the first oil load from União de Sépia, also of 500 thousand barrels. Galp, through its subsidiary Petrogal Brasil, operates in more than 26 oil and natural gas projects in Brazil.