Brazil's government is preparing an extra auction this year of stakes in offshore oil areas to boost revenue, a plan gaining steam amid falling oil prices and rising global trade uncertainty…
Brazil's government is preparing an extra auction this year of stakes in offshore oil areas to boost revenue, a plan gaining steam amid falling oil prices and rising global trade uncertainty, said four people familiar with the matter.
Two of the sources, who spoke on condition of anonymity, said the auction will involve smaller, uncontracted parts of the pre-salt Tupi, Mero and Atapu fields, looking to raise around 20 billion reais ($3.4 billion) in a "worst case" scenario.
Brazil's Finance Ministry and the Ministry of Mines and Energy did not immediately respond to requests for comment.
The momentum for the auction reflects growing concerns about Brazil's fiscal outlook as U.S. tariffs dim global economic prospects, sending oil prices to a four-year low under $60 a barrel on Wednesday.
Even after rebounding, Brent crude LCOc1closed at $65.48, nearly 20% below the $80.79 average price assumed in Brazil's 2025 budget law.
Higher oil prices typically benefit Brazil, boosting revenue from royalties, corporate income taxes on oil producers, and hefty dividends from state-run oil firm Petrobras.
All four sources said the auction was seen as a way to offset potential revenue shortfalls due to factors beyond the government's control.
"It's crucial to have escape
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