Keywords: preliminary tender protocol, Brazil Round 11
The Brazilian National Agency of Petroleum, Natural Gas and Biofuels ("ANP") published, on January 24, the Preliminary Tender Protocol of the Brazil Round 11. As expected, the round will be held on May 14 and 15 of this year, when a total of 172 blocks will be offered, half of which are onshore and half offshore.
The document is still a preliminary version of the definitive Tender Protocol, which will be published on March 11 after a short period of public consultation that will end on February 4. The document, however, anticipates the rules that will apply to the round and is accompanied by the draft of the concession contract.
Although the Preliminary Tender Protocol preserves the same structure and most of the provisions of previous tender protocols, its wording has introduced some significant revisions:
The Preliminary Tender Protocol implemented the qualification procedures that have recently been adopted by ANP in case of farm-in procedures, particularly regarding the standardization of qualification documents.
The minimum score required for the different categories of operators (A, B and C) remain the same, but certain specific scoring criteria were revised or added, including score for investments made in previous exploratory activities and score for operations undertaken in environmentally sensitive areas.
The minimum net equity required for qualification in the Brazil Round 11 was drastically increased (from R$1 million to R$1.9 million for non-operators; from R$2 million to R$3.8 million for C operators; from R$20 million to R$59 million for B operators and from R$50 million to R$107 million for A operators).
The Preliminary Tender Protocol included, among other fiscal and labor qualification criteria, the requirement of a clearance certificate in respect of labor obligations.
The financial qualification criteria were simplified with the adoption of a standard form for declaration of material obligations and strategic planning.
The publication of the Preliminary Tender Protocol also marks the beginning of the period for submission of the expression of interest and qualification documents, which will last until March 26. The disclosure of the data package is scheduled for January 25, withits delivery being conditional upon the payment of participation fees and approval of the documentation for expression of interest.
The Preliminary Tender Protocol and the draft of the concession contract may be found on the ANP website (document in Portuguese).
At the same time, due to a request from President Dilma, the government is now studying the inclusion of an additional 117 blocks in Brazil Round 11, but no official confirmation in this respect has been made so far.
Previously published on January 25, 2013.
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 2013. 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.