RBL financing under consultation


ANP prepares public consultation on application of the concept of reserve based lending in the country


The ANP is preparing a second public consultation on the application in Brazil of the concept of reserve based lending (RBL), a mechanism by which oil companies can finance their projects by giving their reserves or concession areas as guarantee.

Although it is applied in the US and other countries, the RBL is not used in the Brazilian oil industry. According to Marcelo Castilho, Superintendent of Development and Production of ANP, the agency should allow and regulate the use of this mechanism in Brazil.

In 2016, the ANP put in public consultation a draft resolution on procedures for assignment of rights in E & P contracts. But the proposal did not contemplate the RBL and, at the suggestion of the market, will be redone.

The RBL is a financing option for the production phase or for start-of-production assets expected soon. The mechanism is seen as a tool that helps unlock investments in the industry.

Source: Brazil Energy

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