PPSA Partners with B3 for Oil and Gas Auction Deal

08 May, 2024

PPSA Partners with B3 for Oil and Gas Auction Deal

Sales from the upcoming auctions between Pré-Sal Petróleo (PPSA) and Brazilian exchange B3 are poised to inject a significant sum, potentially ranging between R$10 billion and R$15 billion, into the federal government's coffers, contingent upon the fluctuation of barrel prices. PPSA, the state-owned entity representing the government in production-sharing agreements, has formalized a fresh accord with B3 for the auctioning of oil and gas extracted from pre-salt fields under state ownership.

The inaugural auction, scheduled for July 31, will see the trading of 33 million barrels of oil divided into four lots, with a delivery deadline set for mid-2025. This initial venture holds the promise of substantial revenue, with estimates contingent upon prevailing Brent prices. Subsequent auctions are planned, with discussions underway between PPSA and the Ministry of Mines and Energy (MME) to establish a regular auction schedule.

This collaborative effort with B3 is strategically geared towards bolstering production in pre-salt fields, aligning with plans for the activation of new production areas in the foreseeable future. Proceeds generated from these auctions will be channeled into the Pre-salt Social Fund, supporting broader societal initiatives.

With meticulous planning, PPSA aims to orchestrate a competitive bidding process, ensuring optimal utilization of resources. The auctions will cater to diverse stakeholders, including oil companies and refineries like Acelen, poised to participate in the federal government's oil procurement. Furthermore, Petrobras CEO Jean Paul Prates emphasized the company's commitment to expanding oil and gas production while embracing decarbonization and participating in energy transition endeavors.