ANP PLACES FOR PUBLIC CONSULTATION DRAFT OF PUBLICATION FOR THE 6ND ROUND OF BIDDING IN PRE-SALT

05/06/2019

The National Agency for Petroleum, Natural Gas and Biofuels (ANP) published, on May 15, 2019, the Notice of Public Consultation and Public Hearing No. 10/2019, related to the 6th Round of Production Sharing Bidding.

There will be 5 blocks of high potential, being these: Aram, Bumerangue, Cruzeiro do Sul, Sudoeste de Sagitario and Norte de Brava, distributed in the sedimentary basins of Santos and Campos. The ANP may include new blocks in the Round up to the date of the public hearing, as well as remove blocks of the bid by judicial determination, for technical reasons or in the public interest.

The pre-edict notes that the Cruzeiro do Sul, Sudoeste de Sagitario and Norte de Brava blocks contain reservoirs that extend to areas under concession contract, which requires the adoption of a procedure for individualization of the production (unitization) of oil and natural gas .

Pursuant to CNPE Resolution 01/2019, Petrobras expressed interest in being the operator of the Aram, Sudoeste de Sagitario and Norte de Brava blocks.

National and foreign legal entities, either alone or in a consortium, as well as investment funds (FIPs) may participate in the auction, as a non-operator and only in consortium with operating companies.

The local content rules are:

Aram, Bumerangue:

Operating phase: 18%

Well construction phase: 25%;

Collection and drainage system: 40%; and

Stationary production unit: 25%.

 

Sudoeste de Sagitario:

Operating phase: 18%

Well construction phase: 25%;

Collection and drainage system: 40%; and

Stationary production unit: 40%.

 

Norte de Brava:

It must be equal to the conditions required for this purpose in the contracts of the respective adjacent areas.

The offers will be composed exclusively with the indication of the percentage of excess in oil for the Union, respecting the minimum percentage for the block, as below:

Aram block: 24.53%;

Bumerangue block: 26.68%;

Cruzeiro do Sul block: 22.87%;

Sudoeste de Sagitario block: 26.09%; and

Norte de Brava block: 36.98%.

A bidder will be declared the winner of the auction for each block, which will offer the largest percentage of oil surplus to the Union, which, in turn, should refer to the Brent oil price of US $ 50.00 per barrel and to the production daily average of 12,000 barrels of oil per active producer well, and corrections of the amounts offered are planned, according to the adjustment table in the pre-bidding period.

The value of the signature bonus, to be paid by the winning bidder, in a single installment, as a condition for signing the production sharing agreement of the block for the areas, will be:

  1. a) Aram: R $ 5,050,000,000.00;
  2. b) Bumerangue: R $ 550,000,000.00;
  3. c) Cruzeiro do Sul : R $ 1,150,000,000.00;
  4. d) Sudoeste de Sagitario: R $ 500,000,000.00; and
  5. e) Norte de Brava: R $ 600,000,000.00.

The bid schedule states that the public bidding session will take place on Nov. 7, 2019.

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