Brazil will offer 91 oil blocks permanently

Brazil's Ministry of Mines and Energy said in a statement on Friday that it will sell 91 oil blocks permanently. This could result in signing bonuses of up to 2.4 billion Reis ($394.11m) at the next auction.

The government will offer 39 blocks within the Sao Francisco Basin of Minas Gerais, 41 blocks, and a marginal accumulating field in Rio Grande do Norte's Potiguar Basin, as well as 11 blocks located in Brazil's pre-salt region.

Companies can bid on a block in the permanent offer model. These blocks will be included in the next auction cycle scheduled for 2025.

Brazil's Energy Minister Alexandre Silveira is advocating increasing production in new exploration frontiers so that Brazil doesn't run the risk becoming an oil importer by 2040, since production will decline after reaching a peak of 5.3 million barrels a day in 2030.

Silveira said in a press release that "this increase in production is necessary to ensure our energy security." ($1 = 6.0896 reais) (Reporting by Marta Nogueira in Rio de Janeiro and Leticia Fucuchima in Sao Paulo, writing by Fabio Teixeira)

(source: Reuters)