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Oil and gas auction attracts record bids in Brazil

Oil and gas auction attracts record bids in Brazil

Write: Anke [2011-05-20]
RIO DE JANEIRO, Nov. 27 (Xinhua) -- The winning bids in the National Oil and Gas Agency's (ANP) auctions for oil and gas reserves on Tuesday amounted to a record 2.11 billion reais (1.15 billion U.S. dollars), the biggest figure ever reached in a public auction in Brazil.

According to ANP, 46 percent of the 271 blocks auctioned were sold to a total of 67 companies. It was the biggest number of bidders since the Brazilian government decided to back away from state-owned Petrobras' monopoly in oil and gas exploitation in the country.

The auction's biggest winning bidder was the OGX Petroleo e Gas, a subsidiary of the local holding EBX Group. The group offered 1.5 billion reais (820 million U.S. dollars) for 21 oil and gas blocks.

Brazilian Companhia Vale do Rio Doce (CVRD) paid 31 million reais (17 million U.S. dollars) for the right to explore nine blocks in different regions in Brazil.

In early November, the government decided to remove from the auction the blocks that surround the reserves found by Petrobras in the Santos Basin, announced as the country's biggest ever, a move that caused many investors to withdraw from the auction.