Reuters

RIO DE JANEIRO, July 19 (Reuters) – Brazil’s oil watchdog ANP on Wednesday published the model contract for its 14th round auction of oil and natural gas exploration rights, scheduled for Sept. 27.

On offer are 287 blocks in the offshore basins of Sergipe-Alagoas, Espírito Santo, Campos, Santos, Pelotas, and onshore basins in Parnaíba, Paraná, Potiguar, Recôncavo, Sergipe-Alagoas and Espírito Santo.

If all blocks are assigned, the government will earn a minimum of approximately 1.69 billion reais ($537 million).

ANP Director Decio Oddone said on Tuesday he expects more bids this round thanks to a contract model that will be more attractive to investors.

Among the changes, the 14th round eliminates local content as criteria in the bidding process, heeding a long-standing demand of oil majors, and introduces lowers royalties for less explored areas and mature basins which pose greater risks.

($1 = 3.1470 reais)

(Reporting by Marta Nogueira; Editing by James Dalgleish)

Copyright 2017 Thomson Reuters. Click for Restrictions.

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