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Energy and Natural Resources Newsletter | January 2025
February 19th, 2025

In order to keep our clients informed about the current landscape of the main energy and natural resources sectors in Brazil, we have prepared the Energy Newsletter, a monthly bulletin with the main news of the energy market.
This information channel is the result of the collaboration between our “Oil & Gas” and “Energy” teams.
The newsletter was designed within the context of the energy transition that is being targeted in Brazil, and drafted as a complete source of information about the dynamic Brazilian energy market within the oil, natural gas, electricity and renewable energy sectors.
Enjoy reading!
Oil and Gas
HIGHLIGHTS
Petrobras meets annual production target for 2024
On January 27, 2025, Petrobras announced that it reached all production targets established for 2024, as described in its 2024-2028 Strategic Plan. The total oil and natural gas production reached 2.7 million barrels of oil equivalent per day (boe/d), while commercial production was 2.4 million boe/d and oil production reached 2.2 million barrels of crude oil per day (bbl/d). The company registered new annual records for the total production owned and operated in the Pre-Salt – 2.2 million boe/d and 3.2 million boe/d, respectively –representing 81% of Petrobras’ total production.
The year of 2024 also marked the entry into operation of two new platforms: Maria Quitéria Floating Production, Storage and Transfer Unit (“FPSO”), in the Jubarte field – within the Campos Basin –, which beginning was scheduled for 2025, and the Marechal Duque de Caxias FPSO, in the Mero field – within the Santos Basin. In addition, the Sepetipa FPSO, also in the Mero field, reached its maximum oil production capacity after eight months of operation. These new platforms partially covered the losses resulting from maintenance interruptions and the decline of mature fields, as well as the impact of unscheduled interruptions determined by the National Agency of Petroleum, Natural Gas and Biofuels (“ANP”) and the effects of the Brazilian Institute of Environment and Renewable Natural Resources (“IBAMA”) strike.
Another 2024 milestone was the start of commercial operations in the Natural Gas Processing Unit (“UPGN”), at the Boaventura Energy Complex, in Itaborai (in the state of Rio de Janeiro), in November. This UPGN can process 10.5 million cubic meters of gas per day (m³/day) through its first module.
ANP approves update of Tender Protocol and draft contracts under Production Sharing Open Acreage
On February 06, 2025, the ANP’s Collegiate Board approved the new version of the tender protocol as well as the draft contracts governing the Production Sharing Open Acreage (“OPP”). After the approval, the documents moved forward to seek analysis by the Ministry of Mines and Energy (“MME”) and will be further analyzed by the Brazilian Federal Audit Court (“TCU”).
Below, we highlight the key improvements to OPP instruments:
- Adjustments resulting from the change of local content guidelines provided for in Resolution No. 11/2023 of the National Energy Policy Council (“CNPE”);
- Implementation of regulations provided for in Resolution No. 969/2024, which regulates bids under concession and production sharing regimes;
- Update of guarantee insurance models, based on Consultation and Public Hearing No. 01/2024;
- More flexibility introduced into the Minimum Exploratory Program (“PEM”), which no longer requires the drilling of an exploratory well for all areas, but also provides for the possibility of carrying out both 3D seismic activities and reprocessing;
- Exemption from the participation fee and data sample;
- Bidders without a declaration of interest can submit a bid guarantee (they can join the public session through a consortium with a company that has submitted a declaration of interest);
- More flexibility as to how the bid guarantee is presented, which can be submitted in physical or digital format;
- Deadline definition for the OPP cycle, with a minimum duration of 120 days and a maximum duration of 180 days from approval of the declaration of interest to the public session;
- Amendment to the order of the stages, with companies becoming qualified after the public session;
- Revisions to Annex VI (Procedures for Calculating Cost and Oil Surplus) and Annex IX (Consortium Rules); and
- Incorporation of provisions that encourage practices to reduce greenhouse gas emissions.
As the ANP informed, after the publication of the notice, 14 blocks located in the Pre-Salt Polygon will be available for offer: six of which in the Campos Basin and eight in the Santos Basin.
Access the news in full
5th Cycle of Concession Open Acreage initiated
On February 11, 2025, the official schedule for the 5th Cycle of Concession Open Acreage (“OPC”) was published in the Brazilian Federal Official Gazette (“DOU”).
For the 5th Cycle under public session, 332 exploratory blocks are available in numerous sectors. As the ANP informed, 89 eligible companies are currently registered in the OPC under the concession regime.
Below, see the schedule in full:
Event | Dates |
Opening of the 5th OPC Cycle | February 11, 2025 |
End of the deadline for new registrations | February 17, 2025 |
End of the deadline to update the enrollment documents of registered bidders (ANP Resolution No. 969/2024, Art. 77) | |
Publication of the list of registered bidders eligible to join the 5th OPC Cycle. | February 07, 2025 |
End of the deadline to submit declarations of interest along with offer guarantees for the sectors listed in Annex I to the tender protocol | March 31, 2025 |
Publication of the sectors offered in the 5th OPC Cycle | April 14, 2025 |
End of the deadline to submit declarations of interest along with offer guarantees to the sectors offered in the 5th OPC Cycle | May 12, 2025 |
End of the deadline to submit offer guarantees without a declaration of interest to the sectors offered in the 5th OPC Cycle. | |
Public bidding session | June 17, 2025 |
End of the deadline to submit qualification documents of winning bidders | July 09, 2025 |
Award of the object and approval of the bid result | Until September 01, 2025 |
End of the deadline to submit the documents for: (i) executing concession contracts; and (ii) qualifying affiliates indicated to execute the contract, if any | October 15, 2025 |
End of the deadline to pay the subscription bonus and to submit the receipt | |
Execution of concession contracts | Until November 28, 2025 |
NEWS
ANP publishes oil and gas production data for November 2024
On January 02, 2025, the ANP released the Monthly Newsletter of Oil and Natural Gas Production, which introduces the consolidated data of Brazilian production; The total production, which corresponds to the sum of oil and natural gas production, reached 4.301 million boe/d.
Regarding oil, 3.310 million bbl/d were extracted – representing an increase of 1.3% compared to the previous month, and 10% compared to the same month in 2023. In turn, the production of natural gas for November accounted for 157.64 million m³/d. As the ANP informed, there was a 0.8% increase in burning compared to October 2024, and 2.8% compared to November 2023.
In relation to the Pre-Salt, total production (oil + natural gas) for November was 3.385 million boe/d and corresponded to 78.7% of Brazilian production. Thus, there was an increase of 1.2% compared to the previous month and a reduction of 5.6% compared to the same month in 2023.
In addition, the amount of natural gas processed in the month was 96.1%. Of this percentage, 50.73 million m³/d were made available to the market, while burning reached 6.21 million m³/d. There was a 73.4% increase in burning compared to the previous month, and 69.4% compared to November 2023. The main reason for the increase in gas burning was the commissioning of the Marechal Duque de Caxias FPSO, located in Campo de Mero.
ANP authorizes interconnection of NTS and TAG gas pipelines in Cabiúnas
On January 06, 2025, the ANP published the authorization of the bidirectional interconnection between the Cabiúnas-Reduc III pipeline (“GASDUC III”) owned by Nova Transportadora do Sudeste S.A (“NTS”) and the Cabiúnas-Vitória pipeline (“GASCAV”), owned by Transportadora Associada de Gás S.A. (“TAG”), located in the municipality of Macaé, state of Rio de Janeiro.
This connection will allow natural gas to be handled directly between the TAG and NTS transport facilities, located in Brazil’s northeast and southeast regions, respectively. The implementation of this project is relevant to the market, as it allows inbound and outbound loaders to contract independently, offering the possibility of direct handling between carriers.
The possibility of joining market areas in transportation, in order to merge areas served by different carriers, will allow natural gas to be handled in an integrated manner between several carriers within the same market area.
Stationary Production Unit: Decree authorizes cut of up to 5% in royalties on Round Zero contracts for purchasers
On January 17, 2025, Decree No. 12,362/2025 was published, establishing the procedure for cutting the amount of royalties from oil and natural gas exploration and production concession contracts under Round Zero to up to 5% of total production. In order to claim a reduction in the amount of royalties, legal entities must comply with the local content in activities provided for in the development plans connected to investments made in new Stationary Production Units (“UEP”), aimed at revitalizing fields granted under Round Zero contracts.
In addition, this royalty reduction can be cumulative with other royalty rate reduction programs, provided that it complies with the limit provided for in Article 47, § 1st-A, of Law No. 9,478/1997 (“Oil Law”).
Decree No. 12,362/2025 addresses the documents to be submitted and how to apply for such reduction. The documentation must be submitted to the National Secretariat of Petroleum, Natural Gas, and Biofuels (“SNPGB”) integrating the MME. The ANP will amend the Round Zero Contract regarding the field being requested, including the information provided for in the Framework Ordinance, to be published by the SNPGB if the request is approved.
Power
Guidelines for the 2025 Capacity Reserve Auction
In January 2025, the Ministry of Mines and Energy (“MME”) published Normative Ordinances No. 96 and No. 97, supplemented by Ordinance No. 100/25, which established the guidelines to contract power in the 2025 Capacity Reserve Auction (“LRCAP 2025”).
The LRCAP is scheduled for June 27, 2025, and is expected to contract the following sources:
- Thermoelectric power from natural gas and biofuels sources, with no operational inflexibility; and
- Hydroelectric power, encompassing the expansion of installed capacity of existing hydroelectric power plants that have been centrally dispatched – which have not been extended or bided under Law No. 12,783/2013 –, except for those that have been bided under the quota regime and possess part of its physical guarantee out of this regime.
Product | Projects | Supply Period: | Start of the supply period: |
2025 Thermoelectric Power | Existing, with no operational inflexibility | 10 years | September 01, 2025 |
2026 Thermoelectric Power | July 01, 2026 | ||
2027 Thermoelectric Power | July 01, 2027 | ||
2028 A Thermoelectric Power | July 01, 2028 | ||
2028 B Thermoelectric Power | New, with no operational inflexibility | 15 years | July 01, 2028 |
2029 A Thermoelectric Power | Existing, with no operational inflexibility | 10 years | July 01, 2029 |
2029 B Thermoelectric Power | New, with no operational inflexibility | 15 years | |
2030 A Thermoelectric Power | Existing, with no operational inflexibility | 10 years | July 01, 2030 |
2030 B Thermoelectric Power | New, with no operational inflexibility | 15 years | |
2030 Hydroelectric Power | Expansion of existing plants dispatched centrally | 15 years |
The projects will receive a fixed revenue for supplying the contracted power. In turn, failure to deliver the power required by the Brazilian National System Operator (“ONS”) will result in a 1% reduction of the monthly revenue installment for each hour, applied proportionally to the amount of power not supplied, limited to 30% per month.
The regulation prohibited the participation in the auction of projects that have been awarded in regulated auctions or under CCEARs, CERs, or CRCAPs in force with a period overlapping with the auction supply period, except for hydroelectric project expansions included in the “Hydroelectric Power 2030” products. With the change introduced by Ordinance No. 100, this exception has been extended to the expansion of thermoelectric projects participating in the “2028 B Thermoelectric Power”, “2029 B Thermoelectric Power”, and “2030 B Thermoelectric Power” products.
Access Normative Ordinance No. 96/2025
Access Normative Ordinance No. 97/2025
Access Normative Ordinance No. 100/2025
Three-member list for ANEEL’s substitute director
The National Electric Energy Agency’s (“ANEEL”) Board of Directors operates in a collegiate regime and is formed by five directors. After the withdrawal of former director Hélvio Guerra, in May 2024, ANEEL remained with a vacant position. To hold the position, the Federal Government issued “Decree of January 08, 2025”, and “Decree of January 09, 2025”, which appointed Ludmila Lima da Silva, Daniel Cardoso Danna, and Ivo Sechi Nazareno, respectively, as the first, second, and third substitutes for ANEEL’s collegiate board.
Ludmila Lima da Silva will hold the position until a new holder is appointed or for a maximum period of 180 days. Next, Daniel Cardoso Danna will be summoned, and later Ivo Sechi Nazareno, under the same 180-day deadline.
These appointments are fundamental to ensure ANEEL’s proper functioning. This is due to the fact that, during the period in which the agency had only four directors, several administrative cases were tied and, consequently, not decided.
Sale of 15 power plants annulled due to lack of popular vote
On August 10, 2023, an auction was held to divest 15 hydroelectric power plants owned by Companhia Elétrica de Minas Gerais (“CEMIG”), of which 12 small hydroelectric plants (“PCH”) and three hydroelectric power plants (“CGH”), totaling 41.2 megawatts (MW) of installed power.
However, on January 10, 2025, CEMIG informed the market that the State Court of Justice of Minas Gerais, through a class action, ordered that the auction be annulled. The justice in charge of the case argued that the event violated the Constitution of Minas Gerais, which requires a referendum for privatizing state-owned companies.
The case resonated in the market as, unlike other states, the Minas Gerais’ Constitution requires a referendum for the sale of public company assets.
In a notice to the market, CEMIG emphasized that it will challenge such decision.
EPE and IBAMA executed integration agreement for licensing transmission lines
On January 17, 2025, Empresa de Pesquisa Energética (“EPE”) and the Brazilian Institute of Environment and Renewable Natural Resources (“IBAMA”) entered into a Technical Cooperation Agreement (“ACT”), to legalize the technical integration of the two entities for the purposes of planning and licensing transmission lines.
The ACT is extremely important for the electricity sector due to the number of new projects, including the 128 transmission line projects under the energy transition axis of the Federal Government’s New Growth Acceleration Program – 40 of which are currently being licensed by IBAMA.
ANEEL opens public consultation on auction of isolated systems
On January 22, 2025, the ANEEL established Public Consultation (“CP”) No. 02/2025 to obtain contributions to the draft of Auction Notice No. 001/2025, which seeks to acquire electricity and power to serve the consumer markets of isolated systems composed by 11 municipalities – ten of which within the state of Amazonas –, and one in the state of Pará. The public auction session is scheduled for May 30, 2025.
Among the provisions of the draft, the following premises are highlighted:
- Supply will begin on December 20, 2027, under a supply period of 180 months.
- The auction will include three lots, covering (i) five municipalities in the state of Amazonas with an available power demand of 6,286 kilowatts (“kW”); (ii) five municipalities in the state of Amazonas with an available power demand of 33,521 kW; and (iii) one municipality in the state of Pará, with an available power demand of 9,946 kW.
- The supply solution submitted in the auction must include at least 22% of electricity generated from renewable sources, with or without a storage solution, which must serve all the locations in a given lot.
- The assets to be contracted must be new.
Interested parties in the CP must submit their contributions by March 10, 2025.
Renewables and other Energy Sources
ANP publishes proof of individual 2024 targets for fuel distributors under RenovaBio
On January 07, 2025, the ANP published the results of compliance with the compulsory individual targets for reducing greenhouse gas emissions established for 2024, within the scope of RenovaBio.
A total of 35.7 million decarbonization credits (“CBIOs”) were retired (“withdrawn from circulation”), corresponding to 92% of the overall target established by the CNPE and 77% of the total individual targets calculated by the ANP, including the unmet targets from the previous year.
The individual targets established for 2024 totaled 46.4 million CBIOs, and of the 163 fuel distributors with targets established for 2024, 97 distributors fully met the target; 5 withdrew CBIOs in an amount equal to or greater than 85% of the target; and 61 will be fined for not having met the target.
Photovoltaic sector adds 14.3 GW to the electricity matrix in 2024
On January 16, 2025, the Brazilian Association of Solar Photovoltaic Energy (“ABSOLAR”) published a study indicating that the photovoltaic sector added 14.3 gigawatts (“GW”) to the electricity matrix in 2024, including small and medium-sized self-generation systems on rooftops and land as well as large solar plants. In total, distributed generation amounted to 8.7 GW and centralized generation amounted to 5.7 GW.
Since 2012, Brazil has accumulated 52.2 GW of operational solar power – of which 35 GW from distributed generation and 17.2 GW from centralized generation. The accumulated solar source represents 21.3% of the installed power of the national electricity matrix. In 2024, technology attracted more than BRL 54.9 billion in new investments, including large plants and self-generation systems on roofs, façades, and small plots of land. This amount represents a growth of 30% relating to the investments accumulated until 2023.
MME and EPE launch the 2055 National Energy Plan
On January 06, 2025, the MME and EPE published the first booklet of the 2055 National Energy Plan (“2055 PNE”). This document analyzes and projects the Brazilian energy sector for the next 30 years, addressing the sector’s main trends and uncertainties. In addition, it lists energy scenarios that serve as a basis both for developing the new edition of 2055 PNE and for the National Plan for Energy Transition (“PLANTE”).
The 2055 PNE addresses the main challenges posed to long-term planning within this sector. The key market trends outlined in the 2055 PNE are highlighted as follows:
Thus, the publication of the 2055 PNE is of paramount importance to the energy sector, as in addition to offering a comprehensive long-term vision of the sector, it serves as a strategic tool for policy makers, companies, and investors, ensuring that the Brazilian energy sector is prepared to face the complexities and demands of the future.
Legal Framework for Offshore Projects
On January 11, 2025, Law No. 15,097/2025, known as the “Legal Framework for Offshore Projects”, was sanctioned, which established the guidelines for exploring maritime areas to generate electricity.
Demarest’s Energy and Natural Resources team has published a client alert on this subject.
Energy Transition Acceleration Program
On January 23, 2025, the Brazilian Senate approved Federal Law No. 15,103/2025, which establishes the Energy Transition Acceleration Program (“PATEN”). PATEN aims to:
- Foment the financing of sustainable development projects;
- Streamline the connection between financing institutions and companies interested in developing sustainable development projects;
- Enable the use of credits held by private companies before the Public Administration as a financing instrument;
- Foster the generation and efficient use of low-carbon energy through sustainable projects; and
- Stimulate energy transition activities in coal-mining regions.
Projects eligible to join PATEN are those aimed at carrying out infrastructure works, modernizing, expanding, or setting up sustainable energy production plants, carrying out technological research, and developing technological innovation to provide socio-environmental benefits or to mitigate impacts on the environment.
Participating projects must involve the following sectors, among others:
- Development of technologies and production of fuels to reduce greenhouse gas emissions;
- Expansion and modernization of generation and transmission of solar, wind, nuclear, biomass, natural gas, biogas and biomethane, and hydroelectric plants of any installed capacity, and other renewable energy sources;
- Replacement of high-carbon emission energy sources with clean energy sources;
- Development and integration of energy storage systems.
The projects can be financed by the Guarantee Fund for Sustainable Development (Fundo Verde), managed by the National Bank for Economic and Social Development (“BNDES”), which can fully or partially cover the risk of the financing granted by financial institutions under PATEN.
In addition, the company can carry out the tax transaction of debts with the Federal Administration, municipalities, and public institutions.
PATEN represents a significant milestone in Brazil’s path to a more sustainable and innovative future. By implementing it, the Federal Government demonstrates its clear commitment to fostering low-carbon energy practices and developing the country’s measures towards energy transition.
TYPE | DESCRIPTION | CONTRIBUTION TERM | CODE / NOTES |
Petrobras Contracting | Chartering of AHTS vessel and Specialized Technical Services. | March 14, 2025
12:00 PM |
7004345558 |
Petrobras Contracting | Helicopter chartering to service the Búzios field – Lots I and J. | March 30, 2025
05:00 PM |
7004320835
|
Petrobras Contracting | Chartering of MPSV-type vessel and Specialized Services.
|
February 27, 2025
12:00 PM |
7004338955 |
Petrobras Contracting | Supply of FPSO-type Unit (“SPU”) and Pre-operation, Operation and Maintenance Services, in BOT mode, for SEAP II with the option of supplying an additional FPSO.
|
June 16, 2025
12:00 PM |
7004338481 |
Petrobras Contracting | Chartering of three WSSV-type vessels, provision of specialized technical services for chemical treatments, stimulation and the like, in oil, gas and other wells, as well as in lines and pipelines, and supply of chemical products. | March 14, 2025
12:00 PM |
7004331236 |
Petrobras Contracting | EPC HIDW AND HCC GASLUB | March 31, 2025
12:00 PM |
7004269219 |
Petrobras Contracting | EPC HDT, UTAA and UTCR GASLUB | March 31, 2025
12:00 PM |
7004269577 |
Petrobras Contracting | EPC UGH GASLUB | March 31, 2025
12:00 PM |
7004269429 |
Petrobras Contracting | EPC URE, MDEA, AMMONIA AND TAIL GAS GASLUB | March 31, 2025
12:00 PM |
7004269503 |
Petrobras Contracting | EPCS to accomplish the remainder. | April 30, 2025
12:00 PM |
7004278431 |
Petrobras Contracting | Chartering of RSV vessel and specialized technical services. | March 28, 2025
12:00 PM |
7004319394 |
Petrobras Contracting | EPC Laboratory and Gaslub Buildings | March 24, 2025
12:00 PM |
7004297814 |
Petrobras Contracting | Detailed engineering, demolition and dismantling, civil construction, electromechanical assembly, supply of goods, technical assistance, commissioning, and assisted operation services. | March 17, 2025
05:00 PM |
7004314826 |
Petrobras Contracting | Charter of medium-sized helicopters serving as ambulance – LOT G – SUBLOTS 3 and 4. | March 05, 2025
05:00 PM |
7004267354
|
Petrobras Contracting | Chartering of one Maintenance and Safety Unit (“UMS”). | February 21, 2025
05:00 PM |
7004358055
|
Petrobras Contracting | MR UN-ES UN-BS – Maintenance and repair services in stationary marine production units, including the supply of parts and pieces, predominantly in integrity recovery campaigns and maintenance shutdowns using UMS. | February 20, 2025
05:00 PM |
7004363906 |
Petrobras Contracting | Underwater engineering services with an emphasis on integrity, maintenance, reliability, and decommissioning. | February 21, 2025
12:00 PM |
7004343645 |
Petrobras Contracting | Operation, data acquisition, installation support, technical assistance and maintenance services, as well as the supply of the submarine module integrating the hydro-acoustic signal acquisition system (“SAS-HID”). | February 25, 2025
05:00 PM
|
7004359102 |
Call for Contributions (“TS”) ANEEL | |||
TS No. 08/2024 | Obtain contributions on the regulation of Decree No. 11,314, of December 28, 2022. | March 12, 2025 | |
TS No. 027/2024 | Publish information on the Tariff Sandbox projects and receive contributions on how ANEEL should communicate the partial and final results of such projects. | February 28, 2025 | |
CPS (ANEEL) | |||
CP No. 045/2019 | Obtain contributions to establish the operating criteria for reducing or limiting generation. | February 25, 2025 | |
CP No. 001/2025 | Obtain contributions for the improvement of the CCEE’s Trading Rules and Procedures in compliance with Normative Resolution (“RN”) No. 1,085/2024, regarding the participation of a hydroelectric power plant not centrally dispatched under the Energy Reallocation Mechanism (“MRE”). | January 07, 2025 | |
CP No. 002/2025
|
Obtain contributions to improve the draft of Auction Notice No. 1/2025-ANEEL (Auction for the Supply of Isolated Systems, 2025) and its annexes, seeking to purchase electricity and power through supply solutions aimed at meeting the consumer market demand of isolated systems.
|
March 10, 2025 | |
CP No. 003/2025 | Obtain contributions for improving the regulation on sharing Other Revenues of concessionaires and distribution permissionaires, provided for in Submodules 2.7 and 2.7 A of the Tariff Regulation Procedures (“PRORET”). | March 14, 2025 |
** Please note that the deadlines in the table above are constantly changing and correspond to the deadlines disclosed at the time of publication of this newsletter.
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July 25, 2025 – Auction A-5
To be held by ANEEL. |
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May 30, 2025 – Auction for the Supply of Isolated Systems
To be held by ANEEL. |
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July/2025 – Auction for Contracting Capacity Reserve
To be held by ANEEL. |
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August/2025 – New Energy Auctions “A-4” and “A-6”
To be held by ANEEL. |
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September/2025 – Transmission Auction
To be held by ANEEL. |
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October/2025 – Auction for the Supply of Isolated Systems
To be held by ANEEL. |
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November/2025 – Auction for Contracting Capacity Reserve
To be held by ANEEL. |
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December/2025 – Existing Energy Auctions “A-1” and “A-2″
To be held by ANEEL. |
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March/2026 – Transmission Auction 001/2026
To be held by ANEEL. |
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September/2026 – Transmission Auction 002/2026
To be held by ANEEL. |
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