The 603 sq.km block lies in water depths ranging from 500 and 1500 metres some 150km off the Brazilian coastline.
A BHPB spokesperson said the area had been explored before - though details were unavailable at press time - and the first phase would probably include a commitment to drill one well or shoot 1000 sq.km of 3D seismic.
The spokesperson said that other blocks in offshore Brazil had been awarded for values ranging from $US30-80 million and that BHP's price of $US5 million reflected its level of interest in the block.
Brazilian oil regulator ANP plans to sell 54 oil exploration and production licences. Last year the regulator raised $US220 million by selling 34 of 53 concessions. In June 1999, ANP sold 27 concession areas, which marked the end of Petrobras' 40 year strangle hold on oil exploration in the country.
After the run on Brazilian assets last week by major US hedge funds, BHPB may not be in rush to invest heavily in this nation of 170 million people.
Concern about Brazil's debt burden and the political uncertainty stemming from the rise of left-wing populist Luiz Inacio Lula da Silva saw Brazil's stocks and bonds plunge last week, spreading fears that a financial contagion could hit the region very soon.
