PRIO wins Magnetita and Hematita bids in Campos Basin
PRIO has won the Magnetita and Hematita exploration blocks in Brazil’s 4th Permanent Offer Production Sharing Cycle, expanding its position around the Frade and Wahoo area in the northern Campos Basin.
The bids were submitted through PRIO Forte, which was declared the winner with a 100% interest and as operator of both blocks.
For Magnetita, PRIO offered 32.80% of profit oil to the Federal Government, compared with a minimum requirement of 14.09%. For Hematita, the winning offer was 7.18%, against a minimum of 1.73%.
The offers represented premiums of 132.79% and 315.03%, respectively.
PRIO was the sole bidder for both areas.
The fixed signature bonuses are approximately R$93.3 million for Magnetita and R$1.6 million for Hematita.
Together, the two blocks cover approximately 3,664 square kilometers in the northern Campos Basin, close to PRIO’s existing Frade and Wahoo operations.
PRIO said that, if exploration is successful, potential discoveries in Magnetita and Hematita could eventually be developed through subsea tiebacks to the FPSO Valente, currently operating at the Frade Field.
The company has already implemented this development model nearby.
Wahoo started production in March 2026 after being connected to the FPSO Valente through a subsea tieback. PRIO now reports Frade and Wahoo together as the Valente Cluster.
Magnetita and Hematita could therefore extend an infrastructure-led development model already in operation in the same region.
For now, however, both areas remain exploratory.
The minimum exploration program has a term of up to seven years and includes 3D seismic acquisition followed by exploratory drilling. ANP assigns a minimum exploration investment of approximately R$122.8 million to each block.
PRIO has not disclosed prospective resource volumes, recoverable resources or a development schedule for either area.
The auction result is not yet the final contractual step. PRIO Forte must complete the remaining qualification and contracting requirements, including payment of the signature bonuses. ANP currently expects the production-sharing contracts from the 4th cycle to be signed by February 26, 2027.
The result strengthens PRIO’s position in an area where the company already operates production infrastructure and has experience with subsea tieback developments.
This article was produced by Westhon Media for One Energy News.