ANP Received Requests From Twelve Oil Companies To Delay Oil And Gas Block Exploration

ANP Received 48 Requests to Extend the Exploration Phase of Oil and Gas Blocks, 29 of Which Have Already Been Approved and 19 Are Still Under Review.

Oil and Gas Exploration – Twelve different oil companies have already submitted requests to the National Oil Agency (ANP) for extensions of deadlines for complying with their exploration programs due to the effects of the COVID-19 pandemic. COVID-19 Impacts Shipbuilding in Brazil and China and May Compromise the Delivery Deadline for the FPSO Mero 2

In total, the regulatory agency received 48 requests as of August 11, of which 29 were already approved by the agency and 19 are still under review.

Eneva was the company that submitted the most requests (17 in total, of which four have already been approved), followed by Petrobras (ten requests, nine of which have already been accepted).

Total (five, already approved), BP (four, one already accepted), Recôncavo Energia (four, approved), Imetame (two), Equinor (one, approved), Alvopetro (one, approved), Geopark (one, approved), Phoenix (one, approved), Great Energy (one, approved), and BGM (one, approved) complete the list of operators that requested more time.

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Oil and Gas Exploration

Exploration is the first phase of exploration and production contracts, in which companies conduct studies and activities (such as seismic and drilling of wells) with the aim of discovering and/or assessing oil and gas deposits.

When companies win the blocks in ANP auctions, they assume minimum commitments for drilling and seismic surveys, with defined deadlines.

Due to the effects of the pandemic, which led to a shock in oil prices in the oil and gas industry and operational restrictions, ANP decided to open the possibility for postponement of these exploratory deadlines.

The agency allows for the postponement of these commitments for nine months. The extension of exploratory deadlines was regulated by ANP through Resolution 815/2020, published under the health emergency related to COVID-19.

According to the regulatory agency, the order of analysis of requests considers, among other factors, the proximity of the deadline for the extension of the contract. The deadline for submitting requests for postponements of oil and gas exploration is still open.

Click to see the list of requests received. (published on 08/11/20). ANP will periodically update the list of requests received and the status of the analysis.