On April 9, 2021, the Brazilian National Energy Policy Council (“CNPE”) published Resolution CNPE No. 03/2021 ("Resolution"), setting the guidelines for the 2nd Bidding Round under the Production Sharing regime for the Surplus Volume contracted under the Transfer of Rights regime in the Sépia and Atapu areas ("2nd Bidding Round”).
The Resolution establishes that Petrobras must be reimbursed for the investments made in the tendered areas until the effectiveness of the respective Co-participation Agreements, in proportion to the participation interests of the future contractors. The reimbursement amount before the gross-up will be published in the Tender Protocol of the 2nd Bidding Round.
In return for paying the reimbursement, the contractors shall have the ownership of a percentage of the assets existing in the tendered area as of the effectiveness of the respective Co-participation Agreements, in proportion to their participation interest in the co-participated areas.
The reimbursement amounts paid by the contractor will be recovered as cost oil.
The Co-participation Agreements attached to the Tender Protocol of the 2nd Bidding Round shall be executed together with the Production Sharing Contracts of the Transfer of Rights Surplus Volume.
Moreover, the Co-participation Agreements shall also be executed by Empresa Brasileira de Administração de Petróleo e Gás Natural S.A. – Pré-Sal Petróleo S.A. as an intervening party. Possible amendments shall be submitted for approval to the National Agency of Petroleum, Natural Gas and Biofuels – ANP.
Lastly, it must be pointed out that CNPE Resolution No. 2/2019, addressed in our previous Legal Update, remains in force and effective in relation to the areas of Búzios and Itapu.
For more information in relation to this Legal Update, please contact EnergypartnersTC@mayebrown.com.