ANP releases update to the auction notice for the Permanent Production Sharing Offer

The National Petroleum Agency (ANP) published the new versions of the notice and contracts for the Permanent Production Sharing Offer (OPP). One of the new features was the exclusion of the Mogno block, as it is located outside the Brazilian Exclusive Economic Zone, where there are still no guidelines applicable to the production sharing regime.

“The block may be re-introduced after the guidelines for offering areas beyond 200 nautical miles under the production sharing regime are defined,” explained ANP. Thus, 13 blocks located in the Pre-Salt Polygon will be available for bidding, six in the Campos Basin and seven in the Santos Basin: Ágata, Amazonita, Ametista, Esmeralda, Jade, Safira Leste, Safira Oeste, Citrino, Itaimbezinho, Jaspe, Larimar, Ônix and Turmalina.

The Permanent Bidding is the main bidding model for oil and gas exploration and production in Brazil, allowing the continuous bidding of exploratory blocks in onshore and offshore basins. Unlike traditional rounds, this format offers more flexibility to companies, which can submit proposals at the most opportune time. Currently, there are two modalities: the Permanent Concession Offer (OPC) and the Permanent Production Sharing Offer (OPP), depending on the contracting regime adopted.

Below are the main highlights of the new version of the documentation, according to the ANP:

– Implementation of standards from ANP Resolution No. 969/2024, which regulates bids under the concession and production sharing regimes;

– Update of the surety bond models, based on Public Consultation and Hearing No. 01/2024;

– Flexibility of the Minimum Exploration Program (PEM), which no longer requires the mandatory drilling of an exploratory well for all areas, and now also provides for the possibility of carrying out 3D seismic and 3D seismic reprocessing activities;

– Exclusion of payment of participation fees and data sample;

– Possibility of submission of bid guarantee by bidders without a declaration of interest (they may participate in the public session in a consortium with a company that has submitted a declaration of interest);

– Flexibility in the form of submission of the bid guarantee, which may be submitted in physical or digital format;

– Definition of deadlines for the Permanent Offer cycle, with a minimum duration of 120 days and a maximum of 180 days, between the approval of the declaration of interest and the public session;

– Change in the order of the stages, implementing the inversion of phases, with the qualification of only the winning bidders, occurring after the public session;

– Revisions to Annex VI (Procedures for Determining Cost and Surplus Oil) and Annex IX (Consortium Rules);

– Inclusion of provisions that encourage practices to reduce greenhouse gas emissions.