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PPSA's obligations and rights in the Union's pre-salt oil production in Brazil may be diluted with the approval of the Bill that authorizes the sale of Union sharing contracts to the private market.
On Friday, (22/07), PL 1.583/2022, authored by the Executive Branch, was pending in the Chamber of Deputies, which aims to authorization the sale of Union sharing contracts in pre-salt oil production to the private sector. However, the Bill may withdraw part of the obligations of Pré-Sal Petróleo SA (PPSA), a company that operates in the control and management of the exploration of the Union resource.
Sale of Union sharing contracts in oil production in the Brazilian pre-salt layer aims to overcome PPSA’s administrative problems and guarantee revenue
The Bill currently being discussed in the Chamber of Deputies intends to grant the Union the necessary authorization so that pre-salt oil sharing contracts can be sold to the private sector. The main objective of the project, according to the requirements of the Executive Power, is to seek alternatives for anticipating the monetization of the production of the Sharing Contracts, allowing the Union to receive in advance the surplus for the production of oil in the pre-salt layer.
In addition, this would also be an interesting move to reduce and overcome PPSA's logistical, administrative and operational problems regarding its control of resource production, as well as mitigating risks inherent to the commodity trading business itself.
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The Bill aims to carry out the replacement of the company in the consortia of sharing the oil production sharing contracts by the companies that carry out the purchase of the part of the Union.
Thus, the reading of PL 1.583 allows the interpretation that the winner of the event would have compulsory entry into the respective Sharing Agreement, which, consequently, would make the Union no longer liable for the breach of obligations by the assignee.
This would entail a necessary change in the pre-salt oil sharing regime itself, thus transferring the PPSA's contractual position in the Sharing Contracts to the private agent, as well as the responsibilities and obligations attributed to it.
PPSA would have rights and obligations reduced and transferred to the private sector with the approval of the Bill for the sale of the Union's sharing contracts
Among the main attributions of PPSA as representative of the Union in the pre-salt oil sharing regime in Brazil, are the services of technical evaluation of the Evaluation, Discovery and Production Plans, in addition to monitoring the execution of activities to ensure the best exploitation of the resource.
Thus, in addition to assigning the Union's pre-salt oil surplus rights to the private sector, the Bill would also transfer part of the rights and obligations of PPSA to the winner of the bidding process.
In this way, PPSA's work in financial management and production control of the resource in Brazil would be handed over to third parties, going against what determines its purpose and functions assigned by Law 12.304/2010. In addition, the company that won the bidding for the sale of the sharing contracts would also assume the prerogatives attributed by law to the public company (PPSA), such as the appointment of members of the Operating Committee of the consortia of the Sharing Contracts.
Therefore, the Bill becomes highly acceptable for the collection of Union rights in advance in the production of fuel, but should provide the legislator with the option of retaining or not certain PPSA attributions, so that there is no such transfer of obligations and rights.
