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Petrobras, CNOOC and Petrochina win Brazil oil auction for 37.5 mbl

Pré-Sal Petróleo (PPSA), the Brazilian state-owned company managing the government's share of oil produced in subsalt areas, has announced the winners of Brazil’s 4th Federal Petroleum Auction. The auction was divided into four lots, three of which were from the Mero field and one of Búzios field, with a total combined production of 37.5 mbl of oil. 

State-run oil firm Petrobras won two bids (12 mbl Lot 1 and 2.5 mbl Lot 4), acquiring a total of 14.5 mbl. The two other lots were awarded to Chinese oil and gas companies CNOOC (lot 2, 12 mbl) and Petrochina (lot 3, 11 mbl). According to Brazilian law, the oil companies producing in pre-salt oil fields must hand over part of their production to the government, with PPSA being responsible for commercializing it. PPSA expects to generate an estimated BRL17bn (US$3bn) in revenue. 

At the end of 2023, Brazil had proven reserves of oil and condensates estimated at 2,021 Mt.