Brazilian blocks

BP has signed a contract with Brazil-based energy firm Petróleo Brasileiro (Petrobras) to farm-in to five deepwater exploration and production concessions in the Potiguar Basin, located in the Equatorial Margin of Brazil.

The five concessions are currently being operated by Petrobras.

BP Energy do Brasil will acquire a 30% stake in the POT-M-663 and POT-M-760 blocks, which are collectively called BM-POT-16, and a 40% stake in POT-M-665, POT-M-853 and POT-M-855 blocks, which are collectively called BM-POT-17.

The blocks, which together cover a total area of 3,837km², are located between 40km and 110km offshore from the coast of Rio Grande do Norte and Ceará states, in water depths ranging between 50m to 2,100m.

BP secured BM-POT-16 and BM-POT-17 contracts, as part of the Brazil Round 7 in 2005.

The company will hold stakes in concessions in 27 blocks in Brazil and operate eight of them, after the farm-in and signing of concession deals secured in Brazil Round 11.

Petrobras, who currently operates the five concessions, will also hold interests in 22 blocks and operate 12 of them, while the remaining six blocks will be operated by Total and four by BP.

After regulatory approvals, a consortium formed by BP, Petrobras, Petrogal Brasil and IBV will explore BM-POT-16 and BM-POT-17.

BP Brazil president, Guillermo Quintero, said: "Since first gaining interests in ten blocks with our purchase of Devon Energy do Brasil in 2011, we have now expanded our upstream portfolio to interests in 27 blocks in seven basins, which includes the largest deep-water exploration portfolio held by an international oil company in Brazil."

BP owns and operates three producing ethanol mills in Brazil with a total crush capacity of 7.5mt per year.

BP Energy do Brasil currently has interests in 14 concessions in five Brazilian basins.

Image: Map showing BP’s interests in Brazilian blocks. Photo courtesy of BP.