Rio de Janeiro (AFP)

The oil auctions announced as "historic" by the Brazilian government have yielded much less than expected, about $ 17 billion, and have been shunned by almost all foreign majors, Petrobras practically ridden alone.

The government originally hoped to rake in more than $ 26 billion for the auction held during a public session of blocks located in the bay of Santos (southeast), in the area of ​​"pre-sal", to gigantic deposits.

Another disappointment for the government of Jair Bolsonaro whose funds are empty: because of the lack of competition, the percentage of the profits that the companies undertake to pay back to the State remained at the floors fixed by the National Agency of oil (ANP).

The director general of the ANP, Decio Oddone, however considered that these auctions were "a success", insofar as they were "the most important ever made in the world".

A point of view far from being shared by Ivan Cima, director of the consulting firm Welligence Energy Analytics, based in Houston, USA.

"It's a total disaster, the fact that no major has made a bid is a bitter failure.The auction was sealed by amounts too high and a lack of transparency," he explained. .

The state-owned oil company Petrobras won the lion's share, with 90% of the consortium winning the most expensive block, that of Buzios, by joining two Chinese companies, CNODC (5%) and CNOOC (5%).

Awarded for about $ 17 billion, this field is already the second largest in Brazil in terms of production, with 424,000 barrels per day.

"This is one of the fields considered as the most productive in the world, so I think it's positive that a Brazilian company that is already operating on the spot has won this auction," the press conference said. of Energy Bento Albuquerque.

"We do not feel frustrated that Petrobras has strengthened its positions on the Buzios field," added Decio Oddone.

Petrobras also obtained the rights of exploitation on the Itapu field, with approximately $ 437 million and 18.15% profit sharing.

The fields of Sepia and Atapu did not find takers.

Apart from the two Chinese, no foreign major has obtained the slightest participation in these auctions.

Total and BP had already announced in advance that they would not participate in the auction, judging the prices too high for a participation that could be a minority because of the strong appetite of Petrobras, which was confirmed Wednesday.

- Exceptional reserves -

These auctions were exceptional in that they concern areas that Petrobras has already begun to explore. Estimates of their potential are therefore much more accurate than those of unexplored areas awarded in previous auctions.

The potential of these "pre-salt" (pre-salt) deposits, located in very deep water, under a thick layer of salt, is gigantic.

The reserves for all 4 blocks were estimated between 6 and 15 billion barrels by the ANP. If the most optimistic forecasts are confirmed, it would be nearly double the current reserves of Norway.

Although lower than expected, Wednesday's auction total is double that of all oil auctions since 2017, when a series of new blocks was opened to foreign companies.

Brasilia hopes that the massive windfall of oil will reduce an abysmal debt and create jobs in a country with 12.6 million unemployed.

A dozen environmental activists demonstrated in front of the luxury hotel where the auction against the environmental impacts of oil exploration took place.

"It makes no sense, as the government is holding huge oil auctions, millions of people are suffering because of the worst oil spill in the country's history," the NGO 350.org, which activists have brandished black placards condemning the choice of Brazil to give as much importance to fossil fuels.

Labor unions in the oil sector have also called for the cancellation of the court auctions, but according to the newspaper O Globo, the ANP has engaged the services of 115 lawyers to ensure that they would take place.

Other pre-salt oil auctions, less important, are scheduled for Thursday for unexplored areas, for which the ANP expects a total of $ 1.92 billion.

© 2019 AFP