Brazil´s Bidding Rounds
Houston, November 7th 2018
Heloisa Borges Bastos Esteves
R$1.79 trillion
GDP (2016) 10th
largest oil producer, the
largest of Latin America
207.7 million
Population
Penalties
Criteria Brazil at a glance
15
Billion boe of oil and
gas proven reserves
7th largest oil products consumer
7th Largest foreign investments
attractor
~50% Energy supply
And what the oil and gas industry represents
13% Oil and Gas Industry
5th
largest country
(8.5 billion km²)
Production Sharing Contracts Law n. 12.351/2010
~ 2% of sedimentary areas = pre-salt
polygon
Brazil: three fiscal regimes
Concession Contracts Law N. 9,478/1997
~ 98 % of sedimentary areas:
Hundreds of blocks and fields under
contract: only ~ 4% of these
sedimentary areas
5,0 million km2 – onshore
2,5 million km2 – offshore
7.5 million km2
Transfer of Rights Law n. 12.276/2010
10 fields
Source: ANP/2018
Brazil: diversified environment
Concession
• 424 fields
• 322 blocks
Production Sharing
• 4 fiels
• 7 blocks
96 Groups
• 49 Brazilian
• 47 Foreign
The greatest transformation in the Brazilian E&P sector, completing the opening which started in 1997
Diverse and Competitive E&P Market
Petrobras divestment plan
Bidding round
schedule and
open acreage
Need of
additional service
companies
Improvements in
the energy policy
O&G scenario in Brazil
Unique E&P opportunity:
- fast production development
- reserves and production growth
Creation of a competitive, open,
diverse and internationally
referred refining and fuels market
Development of a diverse and
competitive supply chain and
services market
A diverse oil industry
94%
6%
Petrobras Others
2018
Future
Goal: to create a regulatory environment that enables the establish of a real oil industry in Brazil, with a
significant number of players operating in each environment
94% of the Brazilian production is operated by
Petrobras.
Only 29 companies operate
production fields in
Brazil
Only 43 companies
produce in Brazil
Petrobras´ divestment
plan (more than 100
concessions)
+
Partnerships with majors in
the big mature fields
+
Bidding Rounds/
Open Acreage
A diverse oil industry with
multiple players
and operators
Only 4 companies
operate production in
Brazilian deep water (feb,2018)
A diverse oil industry (open and competitive market)
Goal: to attract the right players for each environment
Pre-salt Conventional Offshore Onshore
Supported by oilfield service companies, suppliers and financial institutions
The right players
Qualification requirements
Consortia
Documents shall be submit individually by each of the members.
• Biding rounds: only winner bids; • Contract transfers: required for ANP´s approval.
Technical Legal
Tax and Labor
Compliance
Economic and
Financial
Economic and Financial Requirements
a) Financial Statements
b) Independent auditor’s report
c) Summary of Financial Statements (foreign bidders).
Qualification Level Minimum Net Equity (in R$)
Operator A R$ 152,000,000.00
Operator B R$ 68,000, 000.00
Operator C R$ 5,500,000.00
Operator D R$ 750,000.00
Non-Operator 25% of the required for operators
Technical Requirements
2 a 29 points 30 a 80 points >= 81 points + Currently operating offshore areas
Operator D
Onshore areas, (except remote
areas)
Operator B
Shallow waters and
Onshore
Operator A
Deep water,s
shallow waters
and Onshore Consortia
Non-Operator Operator D
Marginal Fields
Legal requirements & Tax Compliance
a) Corporate documents - if amended since the lastest submission to ANP;
b) Declaration of absence of restraints on the execution of the Contract;
c) Declaration on relevant legal or judicial claims
d) Tax, Labor and Federal Contributions Clearence Certificates
2017
2018
2019
Predictability for the Oil Market
2020
2021
Brazil 16ª Round 6
Brazil 14ª Round
7 Brazil 17ª Round
Brazil 18ª Round 8
Brazil: 5-year Bidding Rounds Plan
To be
confirmed:
Open Acreage - First Wave
ONSHORE Oportunities
Petrobras
Divestment Plan
80% onshore areas 8% onshore areas Large number of onshore
fields to be available in the
Topázio Project
Open Acreage - Second
Wave
Brazil: onshore opportunities
Brazil: offshore opportunities
Pre-Salt 6th Bidding Round 16th Bidding Round
Bidding Rounds
• 5 effective members: 3 from ANP and 2 from the society, plus a federal prosecutor
• Judges enrolment and qualification
• Judges the offered bids
Bidding Comission (CEL)
• Publishes the tender protocols and contract models;
• Coordinates the documents analysis;
• Coordinates the bidding rounds and the public sessions.
ANP
Regular Licensing Rounds
Enrolment
Public Consultation
End of the consultation period
Draft tender protocol tender
Public Hearing
Tender Protocol
Deadline for enrolment and documents submission
Bid Day
Qualification
Deadline for signature documents submission
Contract signature
Open Acreage Bidding Rounds
Technical and
Economical Parameters
Companies studies
Enrollment
Declaration of interest
Disclosure of na interest
and the bidding
schedule
Deadline for new
enrollments
Offer submition
(public session)
Open Acreage Cycles
Awarded Blocks
Signature of the Concession Contracts
Winners qualification documents
Bidding homologation
Awarded Blocks
Permanently including new areas
Director Board Approval
Environmental Guidelines
Public Hearing about the new Areas
Re-publish the Tender Protocol
Open Acreage Cycles
Deadline for new
enrollments
Bid Day Valid declaration of interes: starts
a cycle
Bid bond and new declaration of
interest
Up to ninety (90) days
Up to thirty (30) days
Up to seventy (70) days
Special Bidding Comission (CEL): will publish the events and dates after each declaration of interest
Enrollment in Bidding Rounds
Enrollment is mandatory for each interested company, even those intending submit bids through a consortium.
Companies must enroll separately for each bidding round.
Fill out an electronic enrollment form
Submit the enrollment documents
Pay the participation fee R$ 2,250.00
Any company that fills the electronic enrollment form and pay the participation fee: right to access the data sample for the sectors available on the Open Acreage. All companies enrollment will be analysed by the Commission
Any company with a valid enrollment is able to submit offer for all the sectors and in any cycle of the Open Acreage Concession Offer since then;
Companies can apply and pay the participation fee at any time. However, the deadlines must be observed during the cycles.
Enrollment in the Open Acreage
The enrollment is made once and it´s valid all through the
cycles
When the company joins a cycle documents that were modified since its
last submission must be sent in the latest version.
Technical Data Package for the Open Acreage
The payment of fees for accessing the technical data package is optional.
Fees change according to the quantity and localization of the sectors, and techical data packages may be acquired at any time.
Fixed fees by sector or group of sectors: R$3,500.00 (Marginal Accumulations Areas) to R$ 194,500.00 (High Potential Deep Waters).
Access to the Technical Data Package
Fill out the electronic
enrollment form Fee + Annex IV
Confidentiality Agreement and
Proof of the representatives
powers
Declaration of Interest
At any moment an enrolled bidder can submit the Declaration of Interest (Anexo XIII)
Every declaration of interest must be followed by a bid bond
The approval of the first bid bond followed by the a declaration of interest shall initiate a cycle of the Open Acreage Concession Offer
Submission of Bids
Exploration Blocks
Signature Bonus
80%
Minimum Exploratory Program
20%
Marginal Acummulation Areas
Signature Bonus
100%
Signing the concession agreement
Signature documents
Signature bonus
Financial Guarantee for the Exploratory Program (30% of the
minumum investment)
Once these three conditions are met, the company is able to sign the concession agreement;
Brasil-Rounds
http://rodadas.anp.gov.br/en/
For More Information:
http://rodadas.anp.gov.br
THANK YOU
NATIONAL AGENCY OF PETROLEUM, NATURAL GAS, AND BIOFUELS – ANP
Avenida Rio Branco No. 65, 12º - 21º Floors Rio de Janeiro – Brazil
Tel: +55 (21) 2112-8100