Petrobras and Equinor have acquired the majority of blocks at Brazil's presalt auction

The oil regulator ANP announced on Wednesday that Brazil's Petrobras, the state-run oil company, and Norway's Equinor had won a block in Brazil's Pre-salt Area. They each acquired one and partnered up to acquire a third, according to ANP.

Karoon Energy, based in Australia, also purchased a block. CNOOC of China and Sinopec have formed a consortium for the acquisition of another.

The signing bonus was fixed in this auction, and the winning bidders were the ones who offered the largest percentage of oil that would be transferred to the Brazilian government. The oil will then be sold back to oil companies, which generates revenue for Brazil's Government.

Only eight of the 15 companies that signed up for the auction made an offer, while oil majors like Shell and BP did not make any offers.

Shell said that its decision to not participate in this auction was a reflection of a "disciplined" approach to capital allocation. The firm made the statement shortly after the auction concluded.

Two of seven blocks that were put up for auction received no bids.

(source: Reuters)