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ANP Publishes Notice for the Megaleilão of the Onerous Assignment and Stirs Up the Market

Written by Renato Oliveira
Published on 07/09/2019 at 11:33
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After MME Approval, ANP Releases The Notice And Contract Models For One Of The Most Anticipated Oil And Gas Auctions

Finally, after many negotiations, the Ministry of Mines and Energy approved yesterday, Friday (6/09), the notice and the models of production sharing contracts for the auction of the excess of the onerous assignment.
This was excellent news for the oil and gas market, which is number 1 in tax payments to the government.

The documents for this notice have already been published and you can access them here, they bring a novelty, companies interested in acquiring fields in the Santos Basin that will be offered (Atapu, Búzios, Itapu, and Sépia) will be able to pay the signing bonuses, set at R$ 106 billion, in two installments on the condition of acquiring a minimum participation of the Union, in the oil excess, of at least 5%.

TCU approved the auction rules after lengthy negotiations with MME and according to ANP’s notice, companies have until September 23 to express their interest in the assets.

The Onerous Assignment

The ANP mega auction is a bidding process that is part of the onerous assignment agreement; under this 2010 agreement, Petrobras and the Union agreed that Petrobras would pay for the right to explore 5 billion barrels of pre-salt oil in the Santos Basin. The excess would be the portion that would be auctioned and would belong to Petrobras, hence the Brazilian state-owned company will have to be reimbursed for the investments already made in the fields, seeing that oil reserves have proven to be much higher than expected.

The auction of the excess from the onerous assignment is one of the most anticipated by the market, sparking the interest of Petrobras and foreign oil companies Total, ExxonMobil, CNOOC, BP, Shell, and Petrogal, which actively participated in the discussions of the pre-notice of the bidding process.

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Renato Oliveira

Engenheiro de Produção com pós-graduação em Fabricação e montagem de tubulações com 30 anos de experiência em inspeção/fabricacão/montagem de tubulações/testes/Planejamento e PCP e comissionamento na construção naval/offshore (conversão de cascos FPSO's e módulos de topsides) nos maiores estaleiros nacionais e 2 anos em estaleiro japonês (Kawasaki) inspecionando e acompanhando técnicas de fabricação e montagem de estruturas/tubulações/outfittings(acabamento avançado) para casco de Drillships.

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