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South America news Regional update
We hope you and your families are well amid the COVID-19 outbreak. The EIC South America team remains committed to maintaining the same level of quality during this time. Clariss e Roch a We continue to deliver business intelligence, online events and support to EIC members. At the time of writing, the team is working from home and all office lines are being forwarded to the respective EIC staff. We are putting together a series of webinars such as a South America market update. Furthermore, EIC South America uploaded on our EIC YouTube channel the complete video of our business presentation with PetroRio, which was held on 11 February. Don’t miss the opportunity to hear once again from the largest independent oil and gas company in Brazil about opportunities for suppliers and their perspectives for the future.
Regional news
Brazilian bidding rounds suspended
Brazil’s National Petroleum Agency (ANP) has confirmed that two key bidding rounds offering offshore acreage will not take place in 2020 as a result of the COVID-19 outbreak. The 17th bidding round for E&P concessions was expected to offer 128 blocks, of which 74 are located in the Pelotas Basin – a frontier exploration area. The 7th bidding round for production sharing agreements – a framework designed for pre-salt blocks – would put on offer one block in the Campos Basin and two in the Santos Basin. A special round for surplus oil volumes present in the Sépia and Atapu oil fields is expected to take place in June 2021.
Understanding Procurement in Petrobras in the EIC Rio de Janeiro office
In March we held the course Understanding Procurement in Petrobras which provided clear and comprehensive information to help suppliers do business with the major Brazilian player in the oil and gas sector. We had a full room in the Rio office who listened to specialists about topics such as how to make the most out of Petronect navigation (the Petrobras procurement portal); the changes to the Petrobras’ procurement process; the CRC (Certificate of Registration) and its relevance for bid invitations. If you need any assistance or advice in the region or for more information about upcoming events, please contact: Clarisse Rocha, Head of Americas clarisse.rocha@the-eic.com
Petrobras reduces CAPEX for 2020 The Brazilian oil company has adjusted its CAPEX forecast for 2020 following impacts of the COVID-19 outbreak and the global downturn in oil prices. Petrobras is expected to invest US$8.5bn this year instead of US$12bn, while reducing operational expenses by US$2bn. The company has also announced a 200,000b/d cut in oil output as well as the temporary suspension of operations at production platforms located in the shallow waters of the Ceará, Rio de Janeiro, Rio Grande do Norte and Sergipe states.
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