Lula Government Expected to Approve Bidding for Two More Oil Blocks This Month

The government of Luiz Inácio Lula da Silva is expected to approve this month the bidding of two new oil blocks in the Santos Basin (SP), called Rubi and Granada. The two assets are expected to be auctioned under a production-sharing regime, where production is divided between the Union and companies.

The approval is scheduled for Thursday (15) at a meeting of the National Energy Research Council.

According to the National Petroleum Agency, the total area is about 1,200 km², and its oil potential has been estimated at a total average recoverable volume of 2.1 billion barrels of oil equivalent.

The approvals are being made amid the strengthening of the Lula administration's pro-oil stance, despite the government advocating internationally for the world to move away from fossil fuels.

The increasingly consolidated official stance is that the wealth generated by this activity is important, even for the energy transition, despite the government not having a formal plan for this allocation.

"It’s no use for Brazil to stop producing oil if the demand continues," said Minister of Mines and Energy, Alexandre Silveira.

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