Prospective Partners

Brazil is planning to auction off the rights to co-develop one of its largest oil discoveries, the Libra oilfield, in October. The field is estimated to hold 12 billion barrels of oil, about three-fourth of Brazil's reserves, and may produce more than 1 million barrels per day. 

But this huge potential comes with a steep price tag. The winning bidder will need to invest about US$ 170 billion over the course of a 35-year contract, making it the most expensive single oil field development contract in history. The Brazilian government will take at least 75 percent of the oil produced at Libra, possibly more depending on the accepted bid. Costs will be pushed even higher by a regulatory requirement that companies buy a certain percentage of local goods and services. In addition, Brazil's state-controlled oil company, Petrobras, will automatically be the exclusive operator and own a 30 percent stake.