On March 23, 2020, the National Agency of Petroleum, Natural Gas and Biofuels (“ANP”) published Resolution No. 812/2020 (“Resolution”), which establishes the procedures to be followed by entities regulated by the ANP during the emergency public health situation caused by coronavirus COVID-19.

The Resolution suspended certain obligations, deadlines for administrative sanctioning proceedings, notifications and inspections, as well as required minimum operating schedule and information from regulated entities.

According to the Resolution, specific regulated entities must submit information about any changes in operational routines that may completely or partially compromise the national supply of oil, its byproducts, natural gas and biofuels, together with the submission of their respective action plans, in order to assure continuing provision of services and, consequently, their supply nationwide. The regulated entities that must submit such information are the (i) representatives operators terminals and pipelines for oil, oil byproducts and biofuels; (ii) natural gas transporters; (iii) distributors of liquid fuel and liquefied petroleum gas – LPGs; and (iv) automotive fuel and LPG retailers.

The ANP will not carry out the inspections related to the authorization to operate facilities, under article 21 of ANP Resolution No. 52/2015, and to operate biofuel production facilities, according to ANP Resolution No. 734/2018, in its article 9, article 14, item I and article 24, item VI.

The Resolution suspended, until April 30, 2020, the procedural deadline for ANP notifications and administrative sanctioning proceedings, provided that they do not require urgent processing.

While the public health emergency lasts, liquid fuel aviation fuel distributors will be exempted, respectively, from complying with the requirements of ANP Resolution No. 45/2013 and ANP Resolution No. 6/2015, which address minimum fuel inventories. In addition, on March 25, 2020, the ANP announced, on its website, that it may, if justified by a (regulated) entity, approve inventories and the sale of anhydrous ethanol volumes lower than those provided in ANP Resolution No. 67/2011, without the assessment of an administrative penalty on the economic entity.

Regarding space assignment contracts on storage depots and road supply bases, the Resolution suspended the application of item 3, of article 13, of ANP Resolution No. 784/2019, which prohibited the assignee from using assignor's storage prior to ANP contract approval.

The Resolution also required automotive fuel retailers to operate, at a minimum, from Monday to Saturday, from 7:00 am to 7:00 pm. Any reduced operating hours must be requested and previously authorized by the ANP.

Finally, the ANP may assess penalties on actions that cause damage to the supply.

We remain at your disposal for any clarification or further information.