The Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) published on August 23, 2017, the bid notices for the second and third bid rounds of the pre-salt , under the production sharing regime.
The blocks offered in both bid rounds are located in high potential basins in the pre-salt polygon (Santos and Campos Basins). Therefore, as indicated by the ANP’s Director, the intention is to increase the Brazilian reserves and the production of oil and natural gas, enabling rational use of the energetic resources and expansion of the knowledge on the pre-salt polygon.
The second Production Sharing Bid Round contemplates the following blocks: Norte de Carcará, Sul de Gato do Mato, Entorno de Sapinhoá, and Sudoeste de Tartaruga Verde, Vicinity of Apinhoá, and Southeast of Tartaruga Verde. It is important to note that the blocks offered in this Bid Round have reservoirs extending to areas under concession contracts and therefore, it will be necessary the adoption of an individualization procedure of the production (unitization).
The Third Production Sharing Bid Round, in its turn, will conduct a bidding process for the blocks of Pau Brasil, Peroba, Alto de Cabo Frio Oeste and Alto de Cabo Frio Central.
We point out that Petrobras expressed its interest to be the operator of the block named Entorno de Sapinhoá (object of the Second Bid Round), of the blocks Peroba and Alto de Cabo Frio (offered in the Third Bid Round) – in these cases a consortium may be formed between the winning bidder and Petrobras, which will at least hold 30% share, and will have the right of preference to act as operator in the respective blocks.
The parties authorized to participate in the bid rounds are: (i) Brazilian or foreign legal entities who conduct corporate activities, severally or reunited in a consortium; and (ii) private equity investment funds (FIPs) in the condition of non-operator in the respective blocks and only allowed to present offers in a consortium.
The offers are exclusively composed with the indication of the oil surplus percentage to the Federal Government, in strict observance to the minimum percentages laid down for the offered block, as shown below. The bid notices of both rounds also provide for the payment by the winning bidders of a signing bonus, in a single instalment, as a condition for the signature of the production-sharing contract of the block object of the offer.