Brazil's ANP sells 7 of 13 production-sharing blocks at 4th Open Acreage auction

Brazil's National Petroleum Agency sold seven of the 13 production-sharing blocks available during the fourth cycle of the regulator's Open Acreage production-sharing bid round held Oct. 7, although the sale lacked competitive bidding, as each block was claimed with a single offer.

The auction raised $106.1 million in signing bonuses, with oil companies committing to an estimated $155.7 million worth of investments in seismic surveys and exploration wells, according to preliminary results.

The biggest surprise of the auction came from Brazilian independent oil and natural gas producer Prio, which claimed two production sharing blocks close to the company's Wahoo, Frade and Albacora Leste fields in the Campos Basin. Prio submitted the winning bids for the Magnetita and Hematita production-sharing blocks.

Prio agreed to an $18.7-million signing bonus and guaranteed Brazil a 32.8% share of profit oil for 100% of Magnetita, the ANP said. Prio also will pay a $316,000 bonus and guarantee 7.18% of profit oil for 100% of Hematita.

Magnetita and Hematita fit perfectly in Prio's portfolio, which is concentrated in the northern section of the offshore Campos Basin. Magnetita surrounds Prio's Wahoo field, which pumped first oil in March as part of a tie-back project to the Valente floating production, storage and offloading vessel installed at the nearby Frade field. Magnetita also borders Frade and a portion of the Prio-operated Albacora Leste field, while Hematita is further north.

Prio's winning bids represented a strategic shift for the company, which has boosted output to near 200,000 barrels/day of oil equivalent primarily through developing Wahoo and revitalizing mature fields already in production. Prio CEO Roberto Monteiro had indicated on the sidelines of the ROG.e oil and natural gas conference in late September that the company held little interest in greenfield exploration projects despite a stagnating market for mergers and acquisitions in Brazil.

"The company will evaluate the prospective resources in the block that, in case of success, could be developed by tie-back to the FPSO Valente located at the Frade field," Prio said in a regulatory filing after the auction. Prio expects to conduct a seismic survey and drill an exploration well in the blocks.

CNOOC, Sinopec team up again

China National Offshore Oil Corp., or CNOOC, and China Petroleum and Chemical Corp., or Sinopec, renewed a recent partnership to claim development rights to the Jade production sharing block in the Santos Basin, the ANP said. The two companies previously partnered to buy the Ametista block at the third Open Acreage production-sharing auction held in October 2025. CNOOC holds a 70% operating stake in Ametista, while Sinopec owns a 30% equity share.

The two companies agreed to a $20.9-million signing bonus and guaranteed Brazil an 18.2% share of profit oil to win development rights to Jade, which is east of the Libra production-sharing block containing the Mero field and south of the Alto do Cabo Frio Oeste and Alto do Cabo Frio Central production-sharing blocks, the ANP said. CNOOC will hold a 70% operating stake, while Sinopec will own a 30% equity share.

Brazilian state-led oil company Petrobras, meanwhile, claimed 100% operating stakes in the Azurita block in the Campos Basin and the Cruzeiro do Sul block in the Santos Basin, the ANP said.

Petrobras will pay a $19.7-million signing bonus and guarantee the government a 30% share of profit oil for Azurita, according to the ANP. The block is north of the Itaimbezinho production sharing block and the Equinor-operated Raia Manta and Raia Pintada fields, which are currently under development.

Equinor holds a 50% operating stake in Itaimbezinho, with Petrobras owning the remaining 50% stake. Equinor holds a 35% operating stake in the Raia project, with Petrobras retaining 30% and Spanish-Chinese joint venture Repsol Sinopec owning the remaining 35%.

Petrobras also won a 100% operating stake in the Cruzeiro do Sul block, which is sandwiched between the Tupi field and the Jupiter discovery, the ANP said. Petrobras will pay a signing bonus of $26.8 million and guarantee the government 15.27% of profit oil.

Equinor also won development rights to two production sharing blocks: Rubi and Rodocrosita.

Equinor will pay a $15.5-million signing bonus and guarantee Brazil 25.02% of profit oil for Rubi, which is sandwiched by the prolific Atapu, Buzios and Mero production sharing fields. Equinor will hold a 100% operating stake in the block.

In addition, Equinor partnered with Portugal's Galp Energia to submit the winning offer for the Rodocrosita block. The two companies agreed to a $4.2-million signing bonus and guaranteed 15.52% of profit oil. Equinor will hold a 70% operating stake, while Galp Energia owns a 30% equity share.