October 29, 2019 / 8:36 PM / 16 days ago

Terms of massive Brazil oil auction 'rather difficult' -Petrogal CEO

RIO DE JANEIRO, Oct 29 (Reuters) - It would be a serious challenge for Portugal’s Galp SGPS SA to scoop up acreage in a massive, upcoming oil bidding round in Brazil, an executive said on Tuesday, thanks to sky-high prices for the prized blocks.

While Galp has said investing in Brazil is a major priority, it has also said that it would be cautious when at the so-called transfer-of-rights round scheduled for next week, in which the government is expecting to rake in 106.5 billion reais ($26.6 billion) in signing bonuses.

Speaking to Reuters on the sidelines of Rio de Janeiro’s Offshore Technology Conference on Tuesday, Miguel Pereira, the chief of executive of Petrogal, a Galp subsidiary, doubled down on that view.

“It’s fair to say it’s getting expensive,” he said, adding that it would be “rather difficult” for Galp to get a stake.

Galp is one of 14 firms that have signed up for the rights to bid in the transfer-of-rights round scheduled for next Wednesday. Many of the participants have said the assets are world class, as they are known to hold billions of barrels of untapped crude. However, they also come with a significant price tag.

Galp’s chief executive said last week that the company was focusing on boosting production in areas, such as the Carcara field in Brazil, where it has a 20% stake.

($1 = 4.00 reais)

Reporting by Gram Slattery; Editing by Lisa Shumaker

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