ANP expands by around 300% the number of exploratory oil and gas blocks on the Brazilian Equatorial Margin, jumping from 71 to 289!

The ANP board approved today (25/8) the inclusion of 218 blocks on the Brazilian Equatorial Margin (MEQ) in the Permanent Concession Offer (OPC). According to the Agency, the decision, which is based on Resolution nº 27/21 of the National Energy Policy Council (CNPE), adds 90.321,65 km² in the area on offer at OPC. 

All five basins that make up the MEQ were contemplated (Foz do Amazonas, Pará-Maranhão, Barreirinhas, Ceará and Potiguar), especially the marine environment of deep and ultra deep waters. With this approval, the ANP increases by about 300% the number of blocks under study in the Brazilian Equatorial Margin, jumping from 71 to 289 exploratory blocks.  

218 oil and gas exploration blocks are awaiting an Environmental Opinion and Joint Manifestation from the Ministries of Mines and Energy and the Environment

This region is analogous to recent world-class oil and natural gas discoveries made in neighboring Guyana and Suriname, as well as in the Conjugate African Margin basins.  

The 218 blocks await, as of now, an Environmental Opinion and Joint Manifestation from the Ministries of Mines and Energy (MME) and the Environment (MMA) to be included in the notice of the Permanent Concession Offer. 

According to the ANP, there are currently two types of Permanent Offer: Permanent Concession Offer (OPC) e Permanent Production Sharing Offer (OPP), according to the contracting regime (concession and sharing). Currently, three OPC cycles have been carried out and the OPP has its 1st Open Cycle, whose public session will take place on December 16.

What is the Permanent Offer 

The Permanent Offer is currently the main type of bidding for areas for exploration and production of oil and natural gas in Brazil. In this format, there is a continuous supply of exploratory blocks and areas with marginal accumulations located in any onshore or offshore basins.    

In this way, companies do not need to wait for a “traditional” bidding round to have the opportunity to purchase a block or area with marginal accumulation, which are permanently on offer. In addition, companies have as much time as they deem necessary to study the technical data in these areas before making an offer, without the limited deadline of a one-round public notice.    

Once your registration is approved in the Permanent Offer, the company can declare interest in one or more of the blocks and areas offered in the Invitation to Bid. After approval by the Special Bidding Committee (CEL) of one or more declarations of interest, a Permanent Bid cycle begins, with the release of its schedule by the Committee.

The cycles correspond to the holding of public sessions for the presentation of bids for one or more sectors that had a declaration of interest. On the day of the public session, registered companies can make bids for blocks and areas with marginal accumulations in the sectors being auctioned in that cycle.