ANP approves resolution that determines the payment of up to 1% to landowners where oil and natural gas exploration activities are carried out

The Board of the ANP, informed on the afternoon of this day (25/8), which approved the resolution dealing with the revision of Ordinance ANP No. 143/1998, which regulates the procedures for calculating and paying landowners for oil and natural gas exploration and production activities carried out by oil companies.

According to the ANP, the payment to landowners is a financial compensation owed by concessionaire companies for oil and natural gas exploration and production activities to the owners of the land where these activities are carried out. This payment is made monthly.    

The Agency informs that, with the new resolution, the standard rate currently in force, of 1% on gross production revenue, will be made more flexible, varying between 0,5% and 1%. This change will only be effective for new bids, not impacting the fields currently in production and current landowners.

Law No. 9.478/1997 determined that payment to landowners will occur at a variable percentage between 0,5% and 1% of oil and natural gas production

Oil companies will have to pay landowners between 0,5% and 1% of oil and natural gas production

A ANP Ordinance No. 143/1998 regulated the procedures related to the calculation and payment of this third-party participation, and determined, as a general rule, the application of the percentage of 1% for the payment to the landowner, allowing as an exception the percentage of 0,5% for the cases: (1) marginal fields; and (2) field-school projects.    

As of 2020, the ANP began studies on possible changes to these rules, carrying out a Regulatory Impact Analysis (RIA) with the aim of identifying the regulatory problem, the affected economic agents, the legal basis, the objectives to be achieved and the identification and assessment of regulatory alternatives.    

As a result of the AIR, the pertinence of revising ANP Ordinance No. 143/1998 was verified, in order to make the definition of the rate of payment due to landowners more flexible under the terms of Law 9.478/1997 and regulate the points currently omitted. The draft resolution also went through a 45-day public consultation and public hearing.

ANP said in the statement that specific improvements were also made to the regulation to provide greater legal certainty for concessionaires and landowners. 

“The resolution will enter into force after its publication in the Official Gazette of the Union”, concluded the ANP.