3rd Union oil auction will have six competitors

Pre-Salt Petróleo (PPSA) announced this Friday (12) to the six companies qualified to participate in the 3rd Auction Petroleum of the Union, scheduled for the 26th, at 2 pm, at B3.

The oil companies CNODC, Equinor, Petrobras, Petrogal, Repsol and Totalenergies will compete for more than 55 million barrels of oil owned by the Union in the Pre-Salt Polígono, in the Búzios, Sapinhoá and Tupi fields and in the Mero Development Area.

PPSA informed that all qualified companies are already operating in the pre-salt. With the exception of Petrogal, the others operate or participate in a consortium in one of the four fields whose portion of oil from the Union will be auctioned.

Although the notice allows for consortia, all companies qualified as individual bidders.

The auction will be live and broadcast live on B3’s YouTube channel. Cargoes will be auctioned in the following sequence: Búzios, Sapinhoá, Tupi and Mero.

For each area, contracts will be offered whose terms may vary from 24, 36 to up to 60 months. The largest cargo to be traded is from the Mero Development Area, equivalent to 43.4 million barrels, for a 36-month contract.

Auction

The auction can take place in up to three stages. In the first, each area will be offered under a longer term contract. As explained by PPSA, each bidder will deliver its proposal in writing, based on the reference price set by the National Agency for Petroleum, Natural Gas and Biofuels (ANP) for the respective oil. If there is more than one bidder, the auction will be started in person. The company that offers the highest premium will win.

If there is no bidder for the longer term contract, a new phase will be carried out, with the reopening of that lot for the shorter term contract. Likewise, the winner will be whoever offers the highest premium over the reference price, whether or not there may be a stage out loud.

If the lot is still not sold, the recap phase will start. The lot will be resubmitted for the shortest period and the winner will be the one who offers the lowest discount offer in relation to the reference price.

As in the previous phase, if there is more than one bidder, the open outcry auction will start. Pré-Sal Petróleo, however, may or may not accept the offer.

If not accepted, there are options that will be evaluated later. By law, PPSA can sell oil directly, preferably by auction, or through a trading agent.