On May 24 2016, the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and the Brazilian Institute of Environment and Renewable Natural Resources executed a Technical Cooperation Agreement (“Agreement”) with the purpose of improving the assessment and management of potential environmental impacts resulting from oil and natural gas exploration and production ventures, whether they be speculative or in areas granted by ANP. Furthermore the Agreement indicates the importance of better communication between the parties, as it includes a requirement for exchange of information related to the environmental licensing process for oil and gas industry ventures. This Agreement will be valid for 60 (sixty) months, with possible extension.

The Agreement has been one of the topics of conversation during the first meeting between the IBP (Brazilian Petroleum, Gas and Biofuels Institute) and the new Mines and Energy Minister, Bezerra Filho. The long awaited meeting took place on May 25 2016, as the industry has been requesting faster responses regarding the obtainment of environmental licenses for exploration and production activities.

Observations in this update about Brazilian law are by Tauil & Chequer Advogados and are not intended to provide legal advice. Any entity considering the possibility of a transaction must seek advice tailored to its particular circumstances.