CNPE Schedules Bid Round of Surplus Volumes from Areas under the Transfer of Rights Regime for October 28, 2019

On February 28, 2019, the Brazilian National Energy Policy Council (CNPE) approved the criteria for the bid round of oil surplus from the areas under the Transfer of Rights regime (cessão onerosa), which will take place on October 28, 2019.

The areas to be tendered are Atapu, Búzios, Itapu and Sepia, all located in Santos basin. The areas will be subject to the production-sharing regime.

The CNPE shall have its next meeting by the end of March to establish the signature bonus amounts ​​for each area and the minimum percentage of profit oil that must be offered by interested parties.

Considering that the offered areas were assigned to Petrobras under the exclusive Transfer of Rights regime (cessão onerosa), the bid winner will be required to reimburse the company for the investments made, in exchange for a stake in the assets and production. The reimbursement amount has yet to be established.

Furthermore, an agreement between the bid winner and Petrobras shall be executed to govern the unified operation. Details about such an agreement have not yet been established.

Our Oil & Gas team is available for any further information on this matter.