ANP releases Pre-Bid Protocol for the surplus volume of the transfer of rights regime

The Pre-Bid Protocol and the draft of the Production Sharing agreements related to the Bid Round for the Surplus Volume of the Transfer of Rights Regime were published in the Federal Official Gazette on June 13, 2019. These documents are subject to public consultation for 20 days, with subsequent public hearing to be held on July 5, 2019.

The offered areas are Atapu, Búzios, Itapu and Sépia, all located in the Santos Basin, and such blocks shall be offered under the Production Sharing regime. Petrobras exercised its right of first refusal in respect of Búzios and Itapu areas.

ANP established the auction date for November 6, 2019, and interested parties should express interest in this bid round by September 23, 2019, with presentation of all relevant documents and payment of the participation fee.

Some highlights of the Pre-Bid Protocol:

  • Exploration Phase: Absence of an Exploration Phase, since all blocks are already in Development Phase;
  • Coparticipation Agreement: Considering that Petrobras is entitled to 5 billion barrels oil equivalent from the Transfer of Rights areas, there will be a need for the bidder to enter into a Coparticipation Agreement with Petrobras to regulate the corresponding reservoirs;
  • Compensation Due to Petrobras: Petrobras shall be compensated for its investments in the offered blocks, in accordance with the guidelines established in Ordinance MME No. 213/2019.
  • Production Unitization: Atapu, Sépia and Búzios blocks contain reservoirs that extend to adjacent areas and, as such, the successful bidders of those areas shall be obligated under the terms of the respective Unitization Agreement or Unitization Commitment, as the case may be;
  • Additional Technical Data Package: Besides the technical data package that ANP provides in Produce Sharing Clusters, this Bid Protocol provides for the existence of the Additional Technical Data Package, to be made available by Petrobras; and
  • Participation Fee: BRL 503,000.00. This amount also grants access to the Technical Data Package and to the Additional Technical Data Package.

Please follow the link below for the list of assets offered:

Please follow the links below to the relevant documents (made available only in Portuguese on June 17, 2019):

Our Oil & Gas team is available to provide any clarification on this matter.