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Legal Update

4th Pre-Salt Bid Round – Drafts of Tender Protocol and Production Sharing Agreements Released

25 January 2018
Tauil & Chequer Legal Update

On January 25, 2018, the National Agency of Petroleum, Natural Gas and Biofuels ("ANP"), published the draft tender protocol for the 4th Bid Round under the production sharing regime (“4th Pre-Salt Round”), with the objective of establishing the procedures and rules for participating in the bid, as well as making available the production sharing agreement drafts, the preliminary schedule and information regarding the offered areas.

The 4th Pre-Salt Round will offer 5 areas located in the Campos and Santos Basins: Itaimbezinho; Três Marias; Dois Irmãos; Saturno; and Uirapuru. As detailed in another legal update, Petrobras will have the preference to operate, with a minimum participating interest of 30 percent, Dois Irmãos, Três Marias and Uirapuru.

According to the schedule of the draft tender protocol, the technical data package is already available and, in order to gain access interested parties are required to: (i) fill out an electronic registration form; (ii) present proof of payment of the participation fee; and (iii) submit the confidentiality agreement in accordance with the terms of the draft tender protocol, together with the corporate documentation and power-of-attorney granted to the accredited representative before the ANP. Below you will find the schedule:

Event

Date

Publication of the draft tender protocol and production sharing agreement drafts

January 25, 2018

Commencement of the period for delivery of documentation on express interest, qualification, and payment of the participation fee

January 25, 2018

Technical data package availability

January 25, 2018

Deadline for comments on the draft tender protocol and the production sharing agreement drafts, and end of public consultation

by February 15, 2018

Public hearing (city of Rio de Janeiro)

February 22, 2018

Technical seminar

January 30, 2018

Publication of tender protocol and production sharing agreement models

March 29, 2018

Environmental and fiscal-legal seminars

April 06, 2018

Deadline for delivery of documentation on express interest, qualification, and payment of participation fee

by April 13, 2018

Deadline to present the bid offer guarantees

by May 22, 2018

Public session for the presentation of offers

June 07, 2018

Award process and ratification of the bidding

by June 28, 2018

Deadline to submit the following documents related to: (i) the signing of the production sharing agreements; and (ii) qualification of the affiliate appointed for the signing of the contract, should the need arise

by September 28, 2018

Deadline for payment of the signing bonus and proof of payment

by September 28, 2018

Signing of the production sharing agreement

by November 30, 2018

It is worth mentioning that the minimum profit oil percentages, the signing bonus amounts and the minimum local content percentages are the same as those defined by the National Energy Policy Council (CNPE) in November, 2017, as covered in our legal update on this matter.

The draft tender protocol and the production sharing agreement drafts – with and without the participation of Petrobras - are available at ANP's webpage (in Portuguese only). All documents will be under public consultation until February 15, 2018, so that contributions may be made, from both the industry and the general public.

We will continue to monitor the development of the 4th Pre-Salt Round, and will keep you posted through our legal updates.

Authors

  • Bruno Triani Belchior
    T +55 21 2127 4205
  • André Lemos
    Associate
    T +55 21 2127 1632
  • Livia Seabra V. de Lima
    T +55 21 2127 4298
  • Henrique Rojas
    T +55 21 2127 4208
  • Leandro Duarte
    T +55 21 2127 4288
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