The Brazilian government is studying the possibility of giving international oil companies a better shot at participating in pre-salt developments in the future.

According to Renata Isfer, oil and gas executive secretary of Brazil’s Mines & Energy Ministry, the government is looking to support a bill sponsored by Senator Jose Serra that will end Petrobras’ preferential bidding rights in the pre-salt, as well as the pre-salt polygon itself.

“We are contemplating this possibility, as well as ending the production sharing contract model for future pre-salt rounds,” Isfer said.

Decio Oddone, director general at market regulator ANP, said putting an end to Petrobras’ preferential rights would give other players a fairer chance at future rounds.

“We know oil companies like to operate their assets and the current model for the pre-salt does not offer the most competitive solution,” he said.

Over the past two years, Petrobras has used its preferential rights to bid for a number of areas in the pre-salt.

The state-controlled company was eventually outbid in two areas — Uirapuru and Tres Marias — but made use of its pre-emption rights to take over operatorship of both areas by joining the winning consortia.

The government is also studying ways to organise future bid rounds under the more market-friendly concession regime, but Isfer said such proposals require further study. The ANP currently plans to host two pre-salt rounds under PSCs in 2020 and 2021.

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