Large Oil Offers for Two Brazilian Oil Blocks

This will be the second auction for two oil blocks, Sepia and Atapu, after one tender in 2019 failed to receive any bids. Reuters reported that the state is seeking a signing bonus of about $2 billion for the two oil blocks. "We expect competition based on our interactions with CEOs," Brazilian oil watchdog told Reuters. This will be the first major spending decision for Exxon after reporting a massive $22.4 billion loss for last year during the pandemic, Reuters said. If both blocks find bidders, it could eventually increase Brazil's oil production by up to 12 percent, bringing in total investments of $40 billion over the next decade, according to Brazil's energy ministry. Brazil is making a lot of effort to increase its oil production. Earlier this year, the country's Minister of Mines and Energy Bento Albuquerque said that by the end of the decade Brazil could become the fifth-largest exporter of crude oil. Albuquerque said, "Brazil will be the world's fifth largest exporter when we reach 5.3 million barrels per day of oil production in 2030," and added that Brazil's crude and liquid production is poised to jump from 3.3 million barrels per day. Currently, Brazil is in the top ten among the world's largest exporters of crude oil, a ranking with Saudi Arabia firmly leading and Brazil 12th. State oil giant Petrobras recently announced its plans to invest approximately $68 billion to increase production over the next five years, which accounts for 82 percent of its total investments planned between 2022 and 2026.