Petrobras and BG lose rights to Santos block

Hopes: Petrobras president Maria das Gracas Silva Foster

AFP/SCANPIX

By FABIO PALMIGIANI Rio de Janeiro

 26 July 2012 22:59 GMT

BRAZILIAN oil giant Petrobras and BG Group of the UK have unexpectedly lost their rights for Block BM-S-52 off Brazil, which is now the second high-profile area in the Santos basin pre-salt province to revert back to market regulator ANP.

Petrobras and BG Group were hoping that an assessment plan of the Corcovado-1 pre-salt discovery would have been sanctioned by the ANP this year, giving the partners more time to continue exploration and development work in the block, according to a source.

However, it is understood that the ANP did not approve the evaluation plan for Corcovado-1 and, for that reason, decided to unilaterally terminate the BM-S-52 contract.

The duo acquired BM-S-52 for 160.2 million reais ($79.5 million) in 2005 in the seventh oil and gas licensing round. Petrobras had a 60% stake…

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