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What a Mammoth Oil Auction Means for Brazil’s Economy

November 04, 2019

Since its first pre-salt auction in 2013, Brazil has grown accustomed to blockbuster oil deals. But the upcoming Nov. 6 auction of prime offshore acreage known collectively as the “Transfer of Rights” (TOR) area promises to be of a different class entirely.

That’s partly because of the sums on offer. If all the blocks up for auction are awarded, the government will collect close to $27 billion in signing bonuses alone – a single day’s cash earnings just shy of the total GDP of neighboring Paraguay.

Production on the blocks, along with blocks auctioned off on Oct. 10 and from...

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