ANP defines timeline for Transfer of Rights auction roadshow

01/ 04/2019

The Transfer of Rights auction roadshow will be carried out between the end of May and the beginning of June. The timeline was informed to BE Petróleo by ANP director Felipe Kury. He anticipated that the proposal is to give a period of three to four months to analyze the data.

The roadshow will be coordinated by the ANP. The criteria for access to the technical data of the areas and the relation of the information that will be made available are being discussed with the MME and other government agencies, as well as the values ​​of the bonuses, the percentage of oil profit and the rules of the auction.

Kury pointed out that the TCU has participated in the discussions on the conditions of access to data that Petrobras has on the areas of the Transfer of Rights assignment. The goal, he said, is to ensure that companies feel comfortable and that the Union can have the highest possible gain in the auction. “It is not a simple thing, and we are studying some alternatives,” he said.

The CNPE will meet on April 9 to approve the main details of the auction, which is scheduled for October 28. On offer will be the areas of Atapu, Búzios, Itapu and Sepia.

The contract for the Transfer of Rights assignment was signed with Petrobras in 2010. At that time, the oil company was entitled to produce up to 5 billion boe in the areas of Florim, Franco, Sul do Guara, Iara, Sul do Tupi South and Nordeste do Tupi , in the Santos cluster. The value of the boe was estimated, at the time, at $ 8.51, which generated a disbursement of $ 42.5 billion by the oil company.

Petrobras is negotiating with the government the terms of the contract review, and the estimate is that the oil company will receive R $ 9 billion. The exploratory work carried out in the region resulted in the discovery of ten fields: Itapu, Búzios, Sul de Sapinhoá, Norte de Berbigão, Sul de Berbigão, Norte de Sururu, Sul de Sururu, Atapu, Suk de Lula and Sepia.

Permanent offer

Felipe Kury participated in the public hearing on the new version of the notice of the permanent offer regime, which included 458 new exploratory areas and 14 assets with marginal accumulations, in addition to the 158 inserted in a first phase. The agency expects to publish the definitive edict within 90 days.

The exact deadline for publication of the edict will depend on the volume of comments submitted by the sector. Following the model of conventional auctions, the ANP will evaluate the considerations, defining what will be accepted and submit a final version for analysis and approval of its attorney and executive board.

The expectation is that the first expressions of interest for the lots of the 458 new assets will begin to be placed in about four to six months after the publication of the announcement. The ANP will make public only the sector of interest, without informing the name of the company and the selected asset.

During the hearing, Nathan Biddle, chief executive of Premier Oil and IBP representative, stressed that the attractiveness of the permanent offer depends on softer requirements. He warned that most of the assets made available had previously been offered unsuccessfully and that, even so, the agency maintained the same economic conditions. In his evaluation, it is important to review the royalties percentages and the bonus amounts.

Thiago Almeida, representative of Greenpeace, defended the removal of blocks from the Amazonas and Parnaíba basins, which, according to the entity, are located in the area covered by the Legal Amazon. The area covers 33 blocks, which, in the opinion of the environmentalist, is inexpressive and does not affect the process, given the volume of assets on offer.

Felipe Kury reinforced the importance of the system of permanent supply of areas, highlighting its regional economic impact in the areas where the assets are located and the diversifying effect of demand for goods and services.

Another factor highlighted by the manager is the synergy of the areas on offer with the assets made available by Petrobras in its divestment program.

According to the director of the ANP, the environmental agencies continue working on the analysis for prior release of the other areas. The agency plans to offer approximately 2,000 areas.

Source: Brazil Energy Magazine

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