ANP estimates that the amount required for the decommissioning of all oil and gas fields currently under development and production would be around BRL 158,58 billion

ANP – The National Agency of Petroleum, Natural Gas and Biofuels started last Monday (31/8) the public consultation, for a period of 60 days, on the resolution that will regulate procedures for the presentation of guarantees and instruments that ensure the decommissioning of facilities production in oil and natural gas fields. 75th ANP Biodiesel Auction reached the level of 6 billion reais

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According to the ANP, the public hearing on the subject will take place on 24/11, by videoconference. This regulation, long awaited by the oil and gas market, gained strength within the scope of Petrobras' divestment plan and the regulatory agency's assignment process for greater legal certainty and transparency for investors.

Oil and gas fields, upon reaching the end of their productive life (ie, when production is no longer sufficient to support operating costs), need to be decommissioned, as per contractual obligation.

Therefore, decommissioning is the set of activities associated with the definitive interruption of the operation of the facilities, the permanent abandonment and razing of wells, the removal of facilities, the proper disposal of materials, residues and rejects, the environmental recovery of the area and the preservation of the local navigation safety conditions.

These activities, which require expenditures, take place exactly at the moment when the oil fields no longer show financial returns. Therefore, oil and natural gas exploration and production contracts contain clauses determining both the obligation to conduct the abandonment and the deactivation of the facilities in accordance with the applicable legislation and to present financial guarantees to ensure the necessary resources for this purpose.

The ANP estimates that the amount required for the decommissioning of all oil and gas fields currently under development and production, until the termination of all contracts, would be around R$ 158,58 billion.

Additionally, the ANP reinforced discussions with the market and placed a draft resolution for prior consultation, in March 2020. Based on the application of the procedures set out in the draft to concrete cases, the National Agency of Petroleum, Natural Gas made improvements to the proposal , resulting in the draft that will now go through the process of public consultation and hearing.