On August 30, 2018, Resolution No. 10/2018 of the National Energy Policy Council ("CNPE") was published in the Federal Official Gazette, establishing the guidelines for the multi-annual planning of bid rounds for the exploration and production of oil and natural gas for the 2020-2021 biennium (“Resolution”).

The Resolution highlights that the multi-annual planning of bid rounds allows the agents of the sector to organize their global portfolios, as well as the acquisition of new data and performance of studies, which promote the Federal Government’s resources.

Furthermore, pursuant to the Resolution, CNPE authorized the National Agency for Petroleum, Natural Gas and Biofuels ("ANP") to carry out the Seventeenth and Eighteenth Bidding Rounds, under the concession regime, respectively, in the years 2020 and 2021.

The Seventeenth Bidding Round will encompass blocks from the onshore basins of Pará-Maranhão (SPAMA-AUP1 sector), Pelotas (sectors SP-AR1, AP1 and AUP1) and Potiguar (SPOT-AP2 sector). In addition, ultra-deepwater areas outside the Campos Basin Pre-salt areas (SC-AP1, AP3, AUP1 and AUP2) and Santos (SS-AP4 and AUP4 sectors) will also be offered.

As for the Eighteenth Bidding Round, the offered blocks will be selected from the basins of Ceará (SCE-AP1, AP2 and AP3 sectors) and Pelotas (SP-AR2, AR3, AP2, AUP2 and AUP7 sectors) and ultra-deep waters outside the Pre-salt polygon of the Espírito Santo Basin (sector SES-AUP2, AUP3 and VT).

Tauil & Chequer Advogados in association with Mayer Brown understands that this initiative promotes predictability for the Oil and Gas sector, attracting investments for the area, granting legal certainty for its agents.