The Brazilian government has provided potential participants in its planned auction of “surplus” production rights with guidance on how winning bidders will be expected to calculate compensation for investments that state-controlled Petrobras has already sunk into oilfield developments in the Transfer of Rights area, writes Gareth Chetwynd.
The winning companies will be required to sign participation agreements with Petrobras seen by some observers as more akin to a farm-in than a licensing round.
