Skip to main content

  • AddRemove
Legal Update

4th Pre-Salt Bid Round – Petrobras Exercises Its Preferential Right for Three Areas

22 December 2017
Tauil & Chequer Legal Update

On December 14, 2017, Petróleo Brasileiro S.A. ("Petrobras") formally expressed to the National Energy Policy Council ("CNPE") its interest in being the operator of three areas that will be offered in the 4th Pre-Salt Bid Round under the Production Sharing Regime ("4th Pre-Salt Bid Round") scheduled for the first semester of 2018, following the procedure mentioned in our Legal Update on Decree No. 9.041/2017.

Of the five areas offered in the 4th Pre-Salt Bid Round (described in our previous Legal Update), Petrobras intends to operate, with a minimum participating interest of 30 percent, Dois Irmãos, Três Marias and Uirapuru.

For those three areas, pursuant to Decree No. 9.041/2017, Petrobras will have the “pull out option” to refuse to enter into a production sharing agreement if the federal government’s profit oil percentage offered by another company or consortium—declared as the winner—is higher than the minimum percentage established in the tender protocol.

With respect to the other two areas offered — Itaimbezinho and Saturno —Petrobras can participate on equal terms and conditions with the other bidding companies.

*****

Observations in this update about Brazilian law are by Tauil & Chequer Advogados. They are not intended to provide legal advice to any entity; any entity considering the possibility of a transaction must seek advice tailored to its particular circumstances.

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
The Build a Report feature requires the use of cookies to function properly. Cookies are small text files that are placed on your computer by websites that you visit. They are widely used in order to make websites work, or work more efficiently. If you do not accept cookies, this function will not work. For more information please see our Privacy Policy

You have no pages selected. Please select pages to email then resubmit.