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ANP Expands by About 300% The Number of Exploratory Oil and Gas Blocks in The Brazilian Equatorial Margin, Jumping From 71 to 289!
Today (08/25), the ANP board approved the inclusion of 218 blocks from the Brazilian Equatorial Margin (MEQ) in the Permanent Offering of Concession (OPC). According to the Agency, the decision, based on Resolution No. 27/21 of the National Energy Policy Council (CNPE), adds 90,321.65 km2 to the area offered in the OPC.
All five basins that make up the MEQ were included (Foz do Amazonas, Pará-Maranhão, Barreirinhas, Ceará, and Potiguar), especially the deep and ultra-deep marine environment. With this approval, 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 Await Environmental Opinion and Joint Manifestation from The Ministries of Mines and Energy and The Environment
This region bears similarities to the recent world-class discoveries of oil and natural gas made in neighboring Guyana and Suriname, as well as in the basins of the African Conjugated Margin.
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The 218 blocks now await Environmental Opinion and Joint Manifestation from the Ministries of Mines and Energy (MME) and the Environment (MMA) to be included in the Permanent Offering of Concession bid.
According to ANP, there are currently two modalities of Permanent Offering: Permanent Offering of Concession (OPC) and Permanent Offering of Production Sharing (OPP), according to the contracting regime (concession and sharing). Currently, three cycles of OPC have been conducted, and the OPP is currently in its 1st Cycle open, with the public session scheduled for December 16.
What Is The Permanent Offering
The Permanent Offering is currently the main modality of bidding for areas for the exploration and production of oil and natural gas in Brazil. In this format, there is a continuous offering of exploratory blocks and areas with marginal accumulations located in any land or maritime basins.
In this way, companies do not need to wait for a “traditional” bidding round to have the opportunity to acquire a block or area with a marginal accumulation, which are permanently available. Furthermore, companies have the time they deem necessary to study the technical data of these areas before making an offer, without the limited deadline of a bidding round notice.
Once their registration is approved in the Permanent Offering, the company can declare interest in one or more of the blocks and areas offered in the Bid Notice. After approval by the Special Bidding Commission (CEL) of one or more declarations of interest, a cycle of the Permanent Offering begins, with the schedule announced by the Commission.
The cycles correspond to the realization of public sessions for presenting offers for one or more sectors that had a declaration of interest. On the day of the public session, registered companies can make offers for blocks and areas with marginal accumulations in the sectors being bid in that cycle.
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