REATE - The Revitalization of Onshore Activities in Brazil

On December 18, 2018, Decree No. 17/2018 of the Ministry of Mines and Energy (“Decree”) was published in the Federal Official Gazette, establishing the Program for the Revitalization of Onshore Oil and Gas Exploration and Production Activities (“REATE”), with the purpose of proposing and monitoring actions, projects and policies aimed at increasing onshore activities.

The coordination of the program will be carried out by REATE’s Steering Committee (“CDR”), which is formed by members of the (i) Secretariat of Petroleum, Natural Gas and Biofuels, (ii) National Agency of Petroleum, Natural Gas and Biofuels - ANP, and (iii) Energy Research Company - EPE. In accordance with the Decree, the CDR will organize semi-annual meetings, and, if necessary, extraordinary meetings may also be held.

The CDR’s responsibilities encompass the following: (i) to monitor the evolution of the actions proposed by REATE’s working group, (ii) to regularly update on the understandings reached regarding the challenges of onshore exploration and production activity in Brazil, (iii) to discuss solutions with entities related to the subject and, whenever possible, to propose new actions in line with REATE’s objectives, and (iv) to draft an annual report of the monitored actions, assessing their impacts on the exploration and production of hydrocarbons, and then submit such report to the National Energy Policy Council (“CNPE”).

Finally, it should be mentioned that the CDR may request the contribution and participation of other bodies, private or related entities, and organizational units of the Ministry of Mines and Energy, as well as necessary information for the performance of its functions.