Contract Extensions Approved By ANP Will Generate US$ 18 Billion In Investments

ANP Is Currently Analyzing The Extension Of Production Deadlines For 56 Concession Contracts. The Extension Of The Contracts Will Yield US$ 18 Billion In Investments

The extension of the deadlines for the “zero round” concession contracts approved by the ANP board will yield investments of around US$ 18 billion. The agency has already approved the extension of the concession deadline for nine fields. Of these, six are offshore fields (Marlim, Marlim Leste, Marlim Sul, Frade, Voador, and Ubarana), with committed investments in the Annual Work and Budget Program (PAT) of around US$ 15 billion for the next five years.

The ANP is currently analyzing the extension of production deadlines for 56 concession contracts based on resolution 2 of 2016 from the National Energy Policy Council (CNPE). Marcelo Castilho, the superintendent of Development and Production at ANP, showed during the O&G Regulation International Benchmark Forum, organized by IBP and OGE, on June 10 and 11, that the extension of deadlines for 12 offshore projects and another 44 onshore projects is under analysis.

The first offshore fields that had their concession contracts renewed were Marlim and Voador, operated by Petrobras in the Campos Basin. In 2016, the ANP extended the contract deadline of the Zero Round, which was set to end in 2025, by 27 years, giving the operator time to produce in the area until 2052. Petrobras plans to decommission the eight production units currently in the Marlim field and install two new FPSOs.

Of the six offshore fields that had their concession contracts extended, five are operated by Petrobras and one by Chevron Frade, which was acquired by the PetroRio group, with PetroRio Jaguar as the new operator of the Frade field in the Campos Basin.

ANP Approves Tender And Contract For The 6th Pre-Salt Sharing Round

On Wednesday, June 12, the ANP board approved the tender for the 6th pre-salt sharing round, which will offer blocks in the pre-salt area of the Santos Basin. The auction date was maintained for November 7, with contract signing at the beginning of 2020. The tender is only expected to be published on September 16, as it must go through the scrutiny of the TCU, which requests a 90-day period to analyze the tender and the sharing contract draft approved by the ANP.

The 6th pre-salt auction will offer the areas of Aram, Cruzeiro do Sul (formerly Southeast of Lula, South and Southwest of Jupiter), Bumerangue, and the Southwest of Sagittarius and North of Brava blocks. Petrobras has expressed its right of preference for Aram, North of Brava, and Southwest of Sagittarius. According to the sharing rule, if it loses the competition for the areas, the company can exercise its preference on the day of the auction and secure operation and 30% of the contracts.

With the preference (30% of the three blocks), Petrobras commits to at least R$ 1.8 billion in signing bonuses. The participation can be greater if the company, alone or in a consortium, presents the best offer for the areas – in the sharing auction, the bonus is fixed and the competition is for the union’s share in the excess oil.

In agreement with the PPSA and the MME, the ANP decided to include in the data package for the 6th round a commitment term for adherence to production individualization agreements. Thus, the agency anticipates to the companies what the obligations of the winners will be in blocks that need to be unitized, which are the cases of Cruzeiro do Sul, Southwest of Sagittarius, and North of Brava. By – epbr

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