On May 04, 2017, the National Energy Policy Council ("CNPE") published Resolution No. 2/2017 ("Resolution"), which establishes the technical and economic parameters for the offered unitization areas relative to the 2nd Pre-Salt Bid Round under the Production Sharing Regime (“2nd Pre-Salt Round”), as well as formally authorizes the National Agency of Petroleum, Natural Gas and Biofuels ("ANP") to carry out the bidding process.

The 2nd Pre-Salt Round will offer non-contracted unitization areas (“open acreage”) adjacent to the prospects of Carcará (block BM-S-8) and Gato do Mato (block BM-S-54) and to the fields of Sapinhoá, in Santos Basin, and Tartaruga Verde (shared deposit of Tartaruga Mestiça), in Campos Basin.

The CNPE defined the minimum percentage of the Union’s profit oil for each area as (i) 22,08% in the Carcará prospect, (ii) 11,53% in the Gato do Mato prospect, (iii) 10,34% in the Sapinhoá Field, and (iv) 12,98% in the Tartaruga Verde Field.

Pursuant to the Resolution, the signing bonus due to the Union will consist of:

i. BRL3 billion for Carcará prospect;

ii. BRL100 million for Gato do Mato prospect;

iii. BRL200 million for Sapinhoá field; and

iv. BRL100 million for Tartaruga Verde field (deposit shared with Tartaruga Mestiça).

Furthermore, the CNPE established the guidelines on the expenses that will be recognized as cost oil, based on the best practices of the oil industry and the typical costs of the activity.

As of the time of publication of this Resolution, Petrobras has thirty days to exercise its preferential rights to be the operator in each of the offered areas.

For more information in relation to this legal update, please contact EnergypartnersTC@mayerbrown.com.

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