RESOLUTION FOR EXTENSION OF OIL AND GAS AREA CONTRACTS RECEIVES BOLSONARO’S SIGNATURE

Sept 14, 2020

President Jair Bolsonaro approved the resolution of the National Council for Energy Policy (CNPE) that deals with the extension of oil and gas exploration and production contracts in Brazil. The text allows the National Petroleum Agency (ANP) to extend the term of the concession contracts signed as of the 1st Bidding Round, held in 1999.

The resolution that received the presidential approval today was approved during a meeting of the CNPE in August this year. The resolution defines that the extension can only be carried out in fields whose extension of the production period proves to be feasible beyond the original contractual period.

Oil companies wishing to request an extension must submit a new Development Plan for the areas to the ANP, indicating the investments to be made. The extension period will be compatible with the production expectations in the plans, but limited to 27 years.

Source: PetroNoticias

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