Deadline maintained for exploration in Espírito Santo

June 21, 201

The ANP rejected a request made by Petrobras and Equinor to extend the terms of the contracts for the 11th round in blocks ES-M-596, ES-M-598, ES-M-671, ES-M-673 and ES- 743, in deep waters in the Espírito Santo Basin.

The oil companies were demanding the extension of the 60 day deadline established by the agency, after drilling a well, to evaluate the project framework in resolution ANP 708/2017, which allows the exploration periods of the round to be extended for two years. The companies alleged difficulties in operating the blocks, based on “unforeseeable circumstances or force majeure”.

The agency’s operating oversight concluded, however, that there was no connection between drilling in the Monai prospect with the reduction of the exploratory risk of the blocks and that the motivation of the oil companies did not appear to be subject to compliance under the contractual conditions envisaged.

The ANP has determined that the operators are notified to present, within 60 days, the documents pertinent to the signature of the contractual addendum, as well as the financial guarantees under resolution 708/2017.

Petrobras is the operator with 50% in block ES-M-596. Equinor holds the other half. The Norwegian operator operates 40% in blocks ES-M-598 and ES-M-673 (with partners Petrobras 40% and Enauta 20%), and with 35% in assets ES-M-671 and ES-M-743 (in partnership with Petrobras 40% and Total 25%).

 

Source: Brazil Energy Magazine

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