New Brazil oil exploration round seen in Aug-ANP

Plans to hold Brazil’s next oil and gas exploration auction round in August are expected to be approved on April 28, the director of the National Petroleum Agency told Reuters on Wednesday.

“We’ve made a lot of progress in the process. We’ve held public hearings on the new concession contracts. The auction format is ready. There is enough time to hold it in August,” the director, Haroldo Lima, said.

Lima also said the approval of the sale of Devon Energy Corp’s (DVN.N) Brazilian assets to oil major BP Plc (BP.L)(BP.N) should be reached before the Easter holiday next week.

“In my opinion, there are conditions to approve it. There are some technical and political issues, but I think (the sale) will be approved,” Lima said in a phone interview.

The Brazilian government held up the sale of Devon’s assets to BP and put the deal under review after BP was hit with a barrage of criticism for its role in the massive Gulf oil spill from the Macondo well.

He also said a reform of Brazil’s ethanol market should be discussed by authorities before the April 28 meeting.

Brazil’s government has begun floating early proposals for an industry policy shift aimed at stimulating local ethanol supplies to bring down local fuel prices.