4th Pre-Salt Bid Round – Drafts of Tender Protocol and Production Sharing Agreements Released
On January 25, 2018, the National Agency of Petroleum, Natural Gas and Biofuels ("ANP"), published the draft tender protocol for the 4th Bid Round under the production sharing regime (“4th Pre-Salt Round”), with the objective of establishing the procedures and rules for participating in the bid, as well as making available the production sharing agreement drafts, the preliminary schedule and information regarding the offered areas.
The 4th Pre-Salt Round will offer 5 areas located in the Campos and Santos Basins: Itaimbezinho; Três Marias; Dois Irmãos; Saturno; and Uirapuru. As detailed in another legal update, Petrobras will have the preference to operate, with a minimum participating interest of 30 percent, Dois Irmãos, Três Marias and Uirapuru.
According to the schedule of the draft tender protocol, the technical data package is already available and, in order to gain access interested parties are required to: (i) fill out an electronic registration form; (ii) present proof of payment of the participation fee; and (iii) submit the confidentiality agreement in accordance with the terms of the draft tender protocol, together with the corporate documentation and power-of-attorney granted to the accredited representative before the ANP. Below you will find the schedule:
|
Event |
Date |
|
Publication of the draft tender protocol and production sharing agreement drafts |
January 25, 2018 |
|
Commencement of the period for delivery of documentation on express interest, qualification, and payment of the participation fee |
January 25, 2018 |
|
Technical data package availability |
January 25, 2018 |
|
Deadline for comments on the draft tender protocol and the production sharing agreement drafts, and end of public consultation |
by February 15, 2018 |
|
Public hearing (city of Rio de Janeiro) |
February 22, 2018 |
|
Technical seminar |
January 30, 2018 |
|
Publication of tender protocol and production sharing agreement models |
March 29, 2018 |
|
Environmental and fiscal-legal seminars |
April 06, 2018 |
|
Deadline for delivery of documentation on express interest, qualification, and payment of participation fee |
by April 13, 2018 |
|
Deadline to present the bid offer guarantees |
by May 22, 2018 |
|
Public session for the presentation of offers |
June 07, 2018 |
|
Award process and ratification of the bidding |
by June 28, 2018 |
|
Deadline to submit the following documents related to: (i) the signing of the production sharing agreements; and (ii) qualification of the affiliate appointed for the signing of the contract, should the need arise |
by September 28, 2018 |
|
Deadline for payment of the signing bonus and proof of payment |
by September 28, 2018 |
|
Signing of the production sharing agreement |
by November 30, 2018 |
It is worth mentioning that the minimum profit oil percentages, the signing bonus amounts and the minimum local content percentages are the same as those defined by the National Energy Policy Council (CNPE) in November, 2017, as covered in our legal update on this matter.
The draft tender protocol and the production sharing agreement drafts – with and without the participation of Petrobras - are available at ANP's webpage (in Portuguese only). All documents will be under public consultation until February 15, 2018, so that contributions may be made, from both the industry and the general public.
We will continue to monitor the development of the 4th Pre-Salt Round, and will keep you posted through our legal updates.
