Brazil Sweetens $6.9 Billion Libra Field Sale Terms to Lure Bids
This article is for subscribers only.
Brazil is easing the terms of an auction to develop Libra, the country’s largest oil find, after fewer-than-expected companies signed up for the sale.
The group that wins the contract at an Oct. 21 auction will be required to give 50 percent of output to the government until costs and investments are covered, according to new terms published in the Official Gazette today. Under original rules, the government’s share would rise to 70 percent after two years of production. The group offering the government the largest share after costs are covered wins the contract upon paying a 15 billion-real ($6.9 billion) signing fee.