On April 13, 2020, Decree 10.320/2020 was published in the Federal Official Gazette, establishing the Program for Improvement of Bid Rounds for the Exploration and Production of Oil and Natural Gas (“BidSIM”) and the respective Joint Executive Committee (“Decree").

The objective of BidSIM is to increase the competitiveness and attractiveness of the areas to be offered in the bid rounds. The Joint Executive Committee, in turn, will be responsible for proposing improvements in the governance and methodology of the bid rounds.

The Joint Executive Committee will be composed of two representatives from each of the following public bodies and entities: (i) the Ministry of Mines and Energy – of which one of the two representatives will be responsible for the coordination of the committee; (ii) the Executive Office of the Presidency of the Republic; (iii) the Ministry of Economy – of which one of the two representatives will be from the Special Secretariat of the Investment Partnership Program; and (iv) the National Agency of Petroleum, Natural Gas and Biofuels.

The Coordinator of the Joint Executive Committee may invite specialists and representatives of public and private bodies and entities to participate in its meetings, without voting rights, to advise on specific topics.

The Joint Executive Committee may hold consultations and public hearings to obtain contributions and technical information about oil and natural gas exploration and production.

The Joint Executive Committee has 180 days to complete its work, counted from the date of publication of the ordinance appointing the representatives of each body or entity. This deadline may be extended once for an equal period, by means of an act of the Minister of State of Mines and Energy.

For more information related to this Legal Update, please contact EnergypartnersTC@mayerbrown.com.