Petrobras approved to operate 3 blocks in next pre-salt round

Brazil's national energy policy council (CNPE) approved a request from state-run oil company Petrobras to exercise its pre-emption right to three blocks to be auctioned at the 6th pre-salt production-sharing tender.

The authorization was published in the country's official gazette on Wednesday. Petrobras will exercise the right to the Aram, Norte de Brava and Sudoeste de Sagitário blocks as an operator with a 30% stake.

Under Brazilian legislation, the state-run company has priority rights to operate pre-salt assets via the production-sharing regime but is required to confirm its interest in advance of the auctions.

In the areas where Petrobras chose not to exercise its preferential right, the firm can still participate on an equal basis with other bidders, whether acting as operator or non-operator.

Brazil's sixth production-sharing auction will offer the Aram, Bumerangue, Cruzeiro do Sul, Sudoeste de Sagitário and Norte de Brava blocks in the Campos and Santos basins, which lie within the pre-salt polygon. The final date of the auction has not yet been announced, but it is due to take place in 2019.