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Brazilian Energy Minister: It is Necessary to Adjust Petroleum Legislation
Brazilian Energy Minister Nelson Hubner said that Brazil needs to make some adjustments to its petroleum legislation.In early November, the Brazilian government canceled exploration and production auctions for 41 oil blocks that were very close to the Tupi oil field or had similar geographical features. Petrobras has previously estimated that the Tupi field contains crude oil and natural gas reserves of up to 8 billion barrels of oil equivalent (BOE).
Hubner said it's unclear what the potential reserves of the find are, but if found, the government would need at least some time to consider it.
Although the government took back 41 oil blocks, after half a day, this oil block auction has become its largest ever. Brazil's National Petroleum Agency (ANP) auctioned 40 oil blocks on the morning of the 27th. These blocks were distributed in five different basins with a total value of 1.6 billion Brazilian reals.
ANP head Haroldo Lima said the ANP is studying the real potential reserves in the pre-salt area and is still examining the best way to exploit them.
Francisco Nepomuceno, Petrobras' executive director for exploration and production, said the company is working on terrain mapping of the Tupi field and its nearby pre-salt areas, including the Carioca field and the BM-S-10 block. The company will also map the terrain of the pre-salt area located in the Espirito Santo Basin.
Epomuceno said the government’s decision to stop auctioning pre-salt-related blocks reflects Brazil’s national sovereignty.
