Brazil's Pre-Salt Oil Auction Attracts Major Bidders, Signals Renewed Deep-Water Interest

Major Players Secure Key Blocks in Strategic Auction

Brazil's National Agency for Petroleum, Natural Gas and Biofuels (ANP) successfully concluded its 3rd Cycle of the Permanent Production Sharing Offer on Wednesday, October 22, 2025, with five of the seven offered pre-salt blocks being awarded. The auction drew significant interest from major international and domestic oil companies, underscoring a renewed focus on Brazil's prolific deep-water exploration prospects.

The state-controlled oil giant Petrobras emerged as a prominent winner, securing full ownership of the Citrino block and a 60% operating stake in the Jaspe block. Its partner in the Jaspe block, Norway's Equinor, acquired a 40% stake in Jaspe and also won the Itaimbezinho block independently.

International Participation and Financial Commitments

Beyond the primary winners, the auction also saw successful bids from other international entities. Australia's Karoon Energy Ltd secured the Esmeralda block, marking its first asset within the pre-salt polygon. Additionally, a consortium formed by Chinese oil majors CNOOC Ltd and Sinopec successfully acquired the Ametista block, a notable development as it represents the first Chinese-operated block in Brazil's pre-salt region.

The five awarded blocks generated a total of R$103.7 million (approximately US$20 million) in signing bonuses. Furthermore, the companies committed to minimum exploration investments totaling R$451.5 million (approximately US$87 million). The bidding process was structured such that the winning bids were determined by the highest percentage of oil offered to the Brazilian government. The average premium across the awarded blocks reached 91.20%, with the Citrino block recording the highest premium at 251.63%.

Significance for Deep-Water Exploration

The successful auction is seen as a strong indicator of revitalized interest in Brazil's energy sector, particularly its deep-water pre-salt areas. These vast fields, located beneath a thick layer of salt on the ocean floor, account for the majority of Brazil's oil production and were instrumental in establishing the country as a leading global oil producer nearly two decades ago. Analysts suggest that recent discoveries, such as BP's Bumerangue discovery, have further boosted confidence and expectations for the region.

While 15 firms initially registered to participate, only eight ultimately submitted offers. Notably, major European players like Shell and BP did not place bids, with Shell citing a 'disciplined approach' to capital allocation. Two of the seven blocks, Ônix and Larimar, received no proposals. Despite this, the overall outcome reinforces investor confidence in Brazil's regulatory environment and the long-term attractiveness of its pre-salt reserves.