Brazil has already demonstrated an auction to sell the largest record oil discovery rights. Large number of its nationalist protests flowing to the scene though many of the international energy companies did not involve.

 

The auction was hold on the Rio de Janeiro hotel where Brazil government has prepared a army around to ensure the safety of the location, especially to blocking the protesters who would interrupt the big event which the Brazil president announced an significant plan targeting at eliminating poverty and allowing the Brazil ranking one of the developed countries.

 

The Libra field, which is a large offshore field that holds between 8 billion and 12 billion barrels of recoverable oi would go up for auction. From estimation, the field can bring $400 billion in taxes and other benefits from over 30 years, as well as about $7 billion up front from signing fees.

 

The auction is the first one after a legal framework ruleing to expand the state share over Brazil's most prolific oil region. There are billions of barrels of oil under a thick layer of salt in the subsalt reserves. The new law is also included that the state Petrobras must exploit the area as an operator.

 

The president looked forward the benefits from the auction will better develop infrastructure such as school, hospitals and other social services which is lack in found in the Brazil where incomes are in shortage.

 

The nation hoped that the auction of the Libra and the Subsalt will make a big difference on the country economy just like the oil and gas had made the US economy boom.

 

The nation also expected the event would change the situation of the country.

 

Libra offshore oil field was through strike in 2007. It cans double the Brazil’s current oil reserves or it can meet the word crude demand for continuous 19 weeks once its size has been confirmed.

 

There are many residents against the selling rights of the many fields even though the government gave the future development direction. One of the protestors was Brazil's new production-sharing model who even gave the government a direct share of future output.

 

Oil unions are also involved in the strike. The protestors demonstrated in the street. Some even led a charge to try to stop the auction. They all thought foreign investors will take over the nations valuable natural resources.

 

The many international companies withdrawn the auction due to the consideration that they can lose from the tens of billions of dollars development and investment.

 

The number of countries signing for the auction is a quarter of what e head of Brazilian oil regulator ANP had predicted.

 

There are Chinese and other Asian state oil companies included in the bidder domination. Some companies gave a warning that the Brazil laid a base to build a good relationship with foreign government.

 

While the Brazil commodities has been developed all over the year, it economic growth has been slow and the long term oil price raised by the increasing export of the US shale oil, there was doubt about the Libra field propects.

 

What makes Libra field auction different is that it is a production-sharing contract. Brazil official said who gives it the biggest cut of profit oil will hold the oil field.

 

The initial bid is less than 50%. But Brazil expected to account more ratios. It has run a new company to sell oil share. About what ways and when Libra will be developed, there are disagreements.

 

The list of the qualified bidders is CNOOC from China, China National Petroleum Corp CNPET.UL, India's Oil and National Gas Corp. Colombia's Ecopetrol SA ECO.CN, Malaysia's state-owned Petroliam Nasional Bmd PETR.UL.