April 22, 2020
On April 20th, the ANP published, in a special edition of the Federal Official Gazette, ANP Resolutions 815/2020 and 816/2020. They establish new procedures to be adopted by companies operating in oil and natural gas exploration and production activities while the temporary measures to deal with the public health emergency resulting from the coronavirus (Covid-19) continue.
ANP Resolution 815/2020 allows contracted companies to extend the Exploration Phase of E&P contracts for nine months. This is a relevant emergency measure in the current scenario to minimize the impacts on the oil and natural gas exploration sector.
ANP Resolution 816/2020 establishes measures related to the flexibility of some contractual obligations in the Exploration and Production Phase, including access to the ANP Exploration and Production Database (BDEP), operational safety and the environment, price of reference for natural gas, investments in Research, Development and Innovation (RD&I) and also for Local Content.
The resolution ratified the measures related to Development and Production and Production Inspection provided for in Orders 92 and 262 of the ANP. Additionally, the ANP decided to extend the deadline for full compliance with the provisions of ANP Resolution No. 806 on burning and loss of oil and natural gas, suspending the deadline for compliance with the Initial Work Program (PTI) for the concessions with contract marginal areas and allow for a variation greater than 15% of the volume produced in relation to the forecasted volume, without the need to revise the production programs.
The new regulation suspends the terms of the membership contracts for access to the BDEP. With regard to operational safety and the environment, the extension of the term in the audit cycle of each installation, such as rigs and platforms, as well as in the audits related to the Well Integrity Management System (SGIP), Operational Safety Management for Subsea Systems (SGSS), Technical Regulation of Terrestrial Pipelines (RTDT) and SGI (Structural Integrity Management System for Terrestrial Oil and Natural Gas Production Facilities).
The deadline for delivering the compositional analysis of natural gas is also extended by 30 days after the termination of the resolution, for the purpose of valuing its reference price (PRGN) (for the calculation of government stakes).
The measures also contemplate the extension of the maximum date for making investments in Research, Development and Innovation (PDI) aimed at fulfilling the obligations generated by oil companies in the reference year 2019. Investments in RD&I are provided for in the contracts clause exploration and production of oil and natural gas.
The resolution also postpones the delivery date for Local Content Reports, Quarterly Spend Reports and Quarterly Certification Reports.