Brazil’s President Dilma Roussef approved today, September 18, the long-expected Brazil Round 11, to be held in May 2013.

Although the details will be disclosed in the next days, it is expected that the round will include the 174 blocks previously announced, half of which are onshore and half offshore. If confirmed, this will be the first time offshore blocks will be offered since the Brazil Round 9 was held at the end of 2007.

Most of these blocks are located in the equatorial cost of Brazil, a promising area that is expected to have potential similar to the huge reserves discovered in the Gulf of Guinea, West Africa.

The Brazil Round 11 will be promoted under the rules of the concession regime, in force in Brazil since 1997, and will not include areas within the pre-salt reserves.

While the Government has announced that the bid round will take place in May 2013 and the Minister of Mines and Energy has informed that the Government will endeavor every efforts to have the pending discussions on the distribution of royalties settled shortly in the National Congress, it is still unclear whether such discussions may affect the next round or only the pre-salt rounds yet to be approved.

For more information about the Brazil Round 11, or any other matter regarding this Legal Update, please contact Alexandre R. Chequer, Leonardo P. Costa or Victor Galante.