It is understood that the offer of areas of great extension, which are called "regional blocks" will increase the attractiveness due to the greater volume of data available

Based on the Program for the Revitalization of Oil and Natural Gas Exploration and Production Activity in Onshore Areas created in 2017, under the government of Michel Temer, and continued in Reate 2020, the government wants to offer large blocks onshore, with up to 36 thousand km² and reduce costs and entry barriers for contracting exploration areas.

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The guidelines proposed by the Ministry of Mines and Energy and the studies by the National Petroleum, Natural Gas and Biofuels Agency (ANP) entered into public consultation for 30 days.

It is understood that the offer of large areas, which are called "regional blocks" will increase the attractiveness due to the greater volume of data available, the possibility of multiple discoveries and the ease of contracting, in comparison with the investment to acquire several blocks onshore minors.

Not only the geological data and the oil potential, but also the existing infrastructure, including gas pipelines, transmission lines and roads, for example, were considered in the studies by the National Agency of Petroleum, Natural Gas and Biofuels (ANP)

Initially, regional onshore blocks with an area ranging from 7 to 36 km² suitable for offer were identified: AM-OP-01 and AM-OP-02, in the Amazon Basin; PAR-OP-02 and PAR-OP-03, in the Paraná Basin; PN-OP-01 and PN-OP-02, in the Parnaíba Basin; and SOL-OP-01 and SOL-OP-02, in the Solimões Basin.

Also included in the offer are prioritizing data acquisition and changing the approval of exploratory plans (successive phases, according to confirmed results), reducing investment guarantees for bids and charging values ​​for area retention close to the minimum.

For the Ministry of Mines and Energy, the signature bonus should be charged for contracts that do not discourage the hiring of blocks: “in the “regional block” model, with large dimensions, care must be taken to adapt the procedure in order to not to establish prohibitive values, which end up alienating possible parties interested in investing in the exploration of these basins”.

In parallel, with the idea of ​​reducing costs for companies in exchange for increasing the volume of investment for greater production, the ANP receives contributions for the rules for reducing royalties for small and medium-sized companies – the draft provides for the charging of a rate of 5 % (legal floor) to 7,5%.

In the end, the expectation is that the collection of royalties will be practically tied. Check the Agency's website for more details.

by -epbr