PPSA offers market first load of oil from Sépia field

Companies interested in buying the first load of oil from the federal government under the shared production contract for the Sépia field have until noon this Wednesday (Aug 31) to send their offer to Pré-Sal Petróleo, or PPSA. The Brazilian state-owned company, linked to the Ministry of Mines and Energy, has been responsible since November 2013 for managing shared production contracts; representing the federal government in production individualization agreements, also called unitization agreements; and managing the trade of oil and natural gas.

The first oil tender from Sépia was announced Tuesday (30) by PPSA, which sent an invitation letter to ten organizations already active in pre-salt exploration, making available a load of 500 thousand barrels through direct sale in the last quarter of the year.

The firm with the highest bid is the winner, based on the benchmark price set for Sépia oil by Brazil’s oil authority ANP, PPSA declared in a note.

In order to ensure the integrity of the process, an online system was created in which businesses completed their registration to submit their proposals to PPSA. Until noon tomorrow, each participant will log into this system and send their proposal. After the deadline, PPSA’s Trade Superintendent Guilherme França should hold a meeting with the group via Teams and access the proposals in the presence of all participants, so as to emphasize the transparency of the operation.

During the conference, the companies in attendance will learn who offered the best price. However, the outcome will not be disclosed until after a PPSA board meeting. The result is expected to be unveiled by September 2.