The Real Reason Big Oil Bailed On Brazil

This year’s final oil auction in Brazil ended in a flop on Thursday, with Big Oil staying away from bidding and only one of five blocks awarded, suggesting that the massive upfront payments and complex royalty schemes have kept the world’s largest oil companies from participating. International oil majors didn’t bid in the 6th Production Sharing Bidding Round for promising areas in the pre-salt layer today, with only Brazilian state-held oil firm Petrobras offering a minimum bid for the Aram block, which it won in a consortium…