In addition to the previously announced pre-salt offshore bid round, the Brazilian Petroleum Agency has recently announced that it will offer, as part of the 12th Oil and Gas Bid Round, 240 onshore blocks for in particular potential gas exploration in seven sedimentary basins. These blocks are located in the states of Amazonas, Acre, Tocantins, Alagoas, Sergipe, Piauí, Mato Grosso, Goiás, Bahia, Maranhão, Paraná, and São Paulo, and represent a total size of 168,348.42 square kilometers.

This new separate onshore bid round, expected to be completed by the end of November, was authorized by CNPE resolution No. 6 of 23/6/2013, and was published recently in the country’s official gazette.

As part of the new bid round, 110 blocks will be offered for new frontier areas in the basins of Acre, Parecis, São Francisco, Paraná, and Parnaíba with the goal of attracting investment for these relatively unknown areas with the goal of producing gas from conventional and non-conventional sources. The size of these 110 blocks is 64,477.76 square kilometers.

Also included are 130 blocks in the mature basins of Recôncavo and Sergipe-Alagoas, for which the Brazilian Petroleum Agency is seeking to promote the ongoing exploration and production of natural gas from conventional and non-conventional sources. The size of these 130 blocks is 3,870.66 square kilometers.

The 12th bid round will use the concession contract structure (as opposed to the Production Sharing Contract model used for the separate pre-salt area bid round).