Participation of foreign companies and consortia in brazilian oil and gas bidding

Oil companies have a long history of cooperative arrangements. The formation of consortia for participation in projects of exploration and production is a common practice and has been seen in Brazil since 1999, when the oil sector was opened to foreign companies. The purpose of this article is to analyze the participation of foreign companies and consortia formed by companies in the bidding for exploratory blocks conducted by the Brazilian agency of oil, natural gas and biofuel [ANP]. The methodology employed is qualitative, supplemented by quantitative analysis, used to verify the existence of correlation between the shares of foreign companies and consortia and two specific variables: Brazil risk and oil prices on the international market. The findings, from a neoinstitutional perspective, point to the conformation of the Brazilian model to international standards in this economic segment, the participation of a large number of companies in the opening process, highlighting the role of Petrobras in the bid rounds, and the formation of a predominant partnership between Petrobras and Petrogal.