Abstract
The Brazilian oil and gas (O&G) sector has huge potential to grow in the next few decades. Changes made by the Petroleum Law established the Brazilian Bid Round system to offer exploratory areas and to grant exploration and production (E&P) licences, resulting in the expansion of investment in E&P. Due to Petrobras’ monopoly in the E&P sector until 1998, only a small portion of Brazil’s sedimentary basins (SBs) have been explored, leaving a large amount of exploratory data to be acquired in poorly explored areas, where little knowledge about hydrocarbon potential is available. This article proposes a model to analyse Brazilian O&G policy decisions, based on historical data and Markov Chains. The model aims to support E&P area offers, taking into account the consequences of the demand for E&P goods and services. We apply the proposed model to Brazilian Bid Round contracts, and derive the optimal interval between Bid Rounds for SBs. The results suggest that the upstream sector in Brazil is impaired by the absence of a regular schedule for Bid Rounds, and will be improved with more predictability in exploratory offers.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
