Permanent Concession Offer: deadline to present additional guarantees for the 3rd Cycle sectors ends on the 14 of March

The deadline for companies registered in the Permanent Offer to present additional offer guarantees for sectors of blocks included in the 3rd Bidding Cycle, which will be carried out under the concession regime, ends next Monday (3/14). The areas that are included in the 3rd Cycle are located in the Espírito Santo, Pelotas, Potiguar, Recôncavo, Santos, Sergipe-Alagoas and Tucano basins. The public session for the submission of bids by companies will be on 4/13/2022.

The declarations of areas of interest accompanied by additional guarantees of offer for the 3rd Cycle must be delivered, until 3/14, at the Protocol service of the Central Office of the ANP, in Rio de Janeiro, to the care of the Superintendence for the Promotion of Tenders (SPL ), or sent by express delivery service contracted by the company to send the documentation to the ANP.

As established by the Permanent Offer rules, the areas defined for a cycle are those that received declarations of interest from previously registered companies, accompanied by an offer guarantee and approved by the Special Bidding Commission (CEL) of the Permanent Offer (PO). All 78 companies registered in the PO had until 2/3/2022 to present declarations of interest accompanied by a guarantee of offer for all areas that are included in the notice of the 3rd Cycle of the Permanent Concession Offer. The areas that will compose this cycle were announced on 2/16/2022, after approval by CEL. Now, until 3/14, these companies can present new declarations of interest, accompanied by an offer guarantee, for the areas already defined for the 3rd Cycle and will be able to submit offers for these areas on the day of the public session.

What is the Permanent Offer

The Permanent Offer is a bidding format for awarding contracts for exploratory blocks and areas with marginal accumulations for exploration or rehabilitation and production of oil and natural gas. In this format, there is a continuous offer of fields returned or in the process of being returned, blocks offered in previous bids and not auctioned or returned to the Agency, in addition to new exploratory blocks in onshore basins under study by the ANP.

There are currently two types of Permanent Offer: the Permanent Concession Offer (OPC), already in its 3rd cycle; and the Permanent Production Sharing Offer (OPP), currently in the process of preparing its bidding instruments.

With the bidding modality introduced by the Permanent Offer cycles, companies do not need to wait for a “traditional” bidding round to have the opportunity to bid for a block or area with marginal accumulation, which becomes permanently on offer. In addition, companies have as much time as they deem necessary to study the technical data of these areas before making an offer, without the limited period of the public notice for a round.