Dec 13, 2019
The National Energy Policy Council (CNPE) has approved the creation of the Committee for Revitalizing the Activities of Exploration and Production of Oil and Natural Gas in Land Areas of the REATE 2020 Program. It will propose measures to improve market conditions and to increase the attraction of small and medium-sized companies in oil and natural gas activities onshore in the country.
The project aims to double the production of Brazilian onshore oil production in 10 years, from 270,000 barrels of oil equivalent daily to 500,000 barrels of oil equivalent daily. For natural gas, the forecast is to go from 25 million m³ / day to over 50 million m³ / day.
The Reate Action Plan foresees four fronts that work independently of each other.
1 – Innovation and Regulation
It aims to make the industry permanently open to technological advances and improve management regulation on the onshore environment, seeking simplification and agility.
It will work on environmental licensing, regulatory agenda, innovation to stimulate production of higher value-added products and data availability, trying – among other things – to increase the ease and reliability of access to ANP’s public data.
Coordination: National Petroleum Agency (ANP)
2 – Encouraging Multiplication of O&G and Goods and Services Companies
It aims to support the creation and implementation of an organization to facilitate dialogue between policy makers and policy regulators with the onshore market, as well as to attract E&P companies and goods and services providers. The idea is also to encourage the emergence of domestic companies including startups and encourage the attraction of foreign investments.
Will propose new financing and business models and identification of data banks available for onshore, human resources bottlenecks and skills available for service.
Coordination: Brazilian Association of Independent Oil and Natural Gas Producers (ABPIP) and National Petroleum Industry Organization (ONIP).
3 – Oil and Gas Potential
It will map the potential of Brazilian onshore basins, identify opportunities and challenges for unconventional oil and gas and also study underground natural gas storage (ESGN).
The main idea is to research and propose technological solutions for the production of natural gas. Within this front will be the work for the realization of the Transparent Well project, which was recently part of the Presidency of the Republic’s Investment Partnership Program.
“This means that the project has become a national priority, given its importance for the development of the potential of the national onshore. Thus, the efforts of other agencies to support the environmental licensing and its implementation will be added”, comments the National Coordinator of Reate at MME, Lucas Lima.
Potential for unconventional
Coordination: Energy Research Company – EPE
4. Promotion of Competition and Competitiveness
Formulation of any measures and actions that encourage competitive practices, especially in the commercialization of oil. The ANP has already sent Cade a request for analysis on the policy practiced by Petrobras for the purchase of oil from small onshore producers.
Here also enters the analysis of the divestments being made by Petrobras. Measures that can be taken by CNPE and ANP to improve and increase the predictability of sales of the company’s land fields will be studied.
Coordination: Ministry of Economy – ME