ANP opens Public Consultations No. 04/2020 and No. 05/2020

Public Consultation Procedure No. 04/2020

On July 7, the Brazilian National Petroleum Agency (“ANP”) introduced Public Consultation Procedure No. 04/2020, which provides for the collection of information to support a new regulation establishing the criteria for the definition of local content to be adopted in the case of unitization and annexation of areas.

The draft of the resolution aims to bring both legal certainty and predictability to different local content commitments, coexisting in the same shared deposit.

Among the innovations brought by this draft resolution, we emphasize

i. the local content individualization for each contracting party during exploration phase and

ii. the criteria of election of a local content clause for the development phase.

The Public Consultation will be available for sixty (60) days and will be followed by a Public Hearing via videoconference on September 15, 2020, from 10:00am to 12:00pm Brasília time.


Public Consultation Procedure No. 05/2020

On July 7, the Brazilian National Petroleum Agency (“ANP”) introduced Public Consultation Procedure No. 05/2020, which provides for the collection of information to support a new regulation establishing the possibility of executing Conduct Adjustment Terms (Termos de Ajustamento de Conduta- TACs) for companies that fail to comply with the local content commitment in agreements for exploration and production of oil and gas already expired or with concluded phases.

The draft resolution provided by ANP, if approved, allows for the compensation of the local content commitment breaches with commitments to the acquisition of assets and services and/or the payment of a certain pecuniary amount.

The Public Consultation will be available for 60 (sixty) days and will be followed by public hearing through videoconference on September 25, 2020, from 10:00am to 12:00pm Brasília time.


Our Oil and Gas team is available for any further information on these matters.