Brazil Offshore Oil Drilling Rights Draw Interest at Auction<br />To make Brazil even less attractive, Mexico, Guyana<br />and several African countries have opened their rich deepwater fields to foreign companies, leading to expectations of new large-scale production over the next decade.<br />“We want to promote a competitive exploration and production market in Brazil.” He added<br />that the presence of Exxon Mobil and other international companies that had abandoned Brazil gave him reason for optimism.<br />The auction follows a series of reforms started last year, dropping the designation of Petrobras as sole operator<br />and lowering requirements for allotted Brazilian content in machinery and construction for exploration and production.<br />Seventeen companies won 37 blocks, including Exxon Mobil, which won eight blocks, mostly in partnership with Petrobras, the national oil company.<br />The government also guaranteed that those winning exploration rights would own the oil and natural gas<br />that is produced, minus royalties, taxes and a government share of profits.<br />The price of oil at that time had climbed above $100 a barrel, political turmoil roiled North Africa<br />and the Middle East, and oil companies sought new reserves in politically stable countries.
