Uncategorized

ANP reduces obligations for Petrobras, Exxon and Chariot contracts

08/22/18

The ANP (National Oil, Gas and Biofuels Agency) has reduced commitments to buy goods and services in the country’s Libra contract, the country’s largest oil discovery. With this, Petrobras and its partners will be able to contract platforms abroad without the risk of fines.

It is the first large national contract that can approve the flexibilization of the national content provided in contract. According to the Ministry of Mines and Energy (MME), the measure unlocks US $ 16 billion in investments in the installation of three oil production platforms.

The flexibilization of contracts is defended by the Temer government as an effort to try to unlock investments. It involves contracts signed between 2005 and 2015 which, according to the companies, have minimum percentages incompatible with the production capacity of the national industry.

The measure, however, is questioned by Brazilian manufacturers and shipyards, for whom the new indicators practically eliminate the need to hire national suppliers.

On the 17th, the ANP reported that it has received 256 requests for changes in old contracts, which comprise 322 exploratory blocks. On Monday (20), it announced the review of two contracts operated by the American ExxonMobil and four contracts by the British Chariot, in addition to Libra.

In July, the agency had already reviewed contracts for Eneva, which operates gas fields in Maranhão. There are also requests from Anglo-Dutch Shell, Norwegian Equinor (formerly Statoil), French Total and Russian Rosneft, among others.

The Libra contract had already been the subject of a dispute between the consortium led by Petrobras and the Brazilian naval industry, which went to court to prevent outsourcing of the first platform of the project, but was eventually defeated.

The unit is being built Singapore. Petrobras argued at the time that manufacturing with the percentages required under contract would increase the cost of the unit by 40%.

The country’s largest oil discovery, with up to 12 billion barrels, Libra was the first area sold under the production-sharing regime in which the government has a stake in the consortium in 2010. Petrobras’ partners in the consortium are Total, Shell and the Chinese CNOOC and CNPC.

According to the new terms of the contract, they will have to locally contract a minimum of 18% of exploration expenses, 25% in well construction and 40% for submarine systems and platforms. In the old contract, the minimum percentage for platforms was 55%.

Oil companies argue that the proposal to reduce purchases commitments in the country is key to attracting competition in recent government oil auctions.

Source: Folha SP

Categories: Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s