Wednesday 6 November 2019

Brazil’s blockbuster oil auction falls flat | Financial Times

Brazil’s blockbuster oil auction falls flat | Financial Times:

Brazil’s much-anticipated auction of deep-sea oil deposits ended in ignominy on Wednesday as global energy groups backed away from bids on almost all the offerings.

The development will be a blow to the Brazilian oil industry’s hopes as well as the administration of President Jair Bolsonaro, which had hoped to raise $25bn in licensing fees and tens of billions more in production compensation from the auction.

Steep prices, complex sharing rules and a broader reticence about Brazil appear to have frightened away major global players. After weeks of hype, two of the four deepwater prospects received no offers and the other two received the lowest possible bids.

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