Explainer: Translating TOR - How Brazil's $26 billion oil rights auction works - Reuters:
Brazil’s Senate passed the main text of a bill late on Tuesday defining the distribution of proceeds from a blockbuster auction of oil prospecting rights, a key milestone for the enormous offshore region known as TOR - the ‘transfer-of-rights’ area.
The bidders who win exploration and production rights in the massive Nov. 6 auction will be obliged to pay the government a combined signing bonus of some 106.5 billion reais ($25.8 billion), making it the largest oil bidding round in history, according to Brazilian authorities.
The fields are unique as Brazilian state-run oil firm Petroleo Brasileiro SA, better known as Petrobras, has already done significant exploration work in the area. As a result, it is already known to hold billions of barrels of untapped crude, reducing so-called exploratory risk.
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