The Brazilian Petroleum Agency ("ANP") has published Resolution No. 52, of December 2, 2015 ("ANP Resolution No. 52/2015") which repealed ANP Order No. 170, of November 26, 1998. The resolution updates provisions related to the construction, extension and operation of offloading facilities of oil and its byproducts, natural gas, including LNG, biofuels and other products supervised by the Agency, in concordance with the legislative changes that have occurred since 1998, in particular Law No. 11.909/2009 and Law No. 12.490/2011.

The facilities subject to the new resolution are (i) pipelines and their auxiliary facilities (accessories and components); (ii) onshore and offshore terminals; (iii) LNG terminals, natural gas liquefaction units and LNG regasification units; and (iv) Exploration and Production (E&P) facilities, pipelines and their auxiliary facilities (accessories and components) of areas not included in E&P contracts (i.e. those not included in the Development Plan).

ANP Resolution No. 52/2015 clarifies that the natural gas pipelines subject to the new regulations are limited to those pipelines subject to the authorization regime, as established by the article 4 of Decree No. 7.382/2010, which regulates article 3 of Law 11.909/2009.

As previously established in ANP Order No. 170/1998, the authorization for the construction, extension and operation of the facilities mentioned above will be granted by ANP in two phases: (i) Authorization of Construction (AC); and (ii) Authorization of Operation (AO). Said authorizations are conditional upon the submission of certain information specified in ANP Resolution No. 52/2015.

ANP Resolution No. 52/2015 also regulates the conditions and procedures regarding the transfer of the AC and the AO.

Such new regulation is part of a recent effort by the Agency to provide the necessary regulatory measures to improve the oil and its byproducts, natural gas and biofuels transport sector.

Visit us at Tauil & Chequer

Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."

© Copyright 2015. Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. All rights reserved.

This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.