Brazil′s petroleum, natural gas, and biofuels regulatory agency, Agência Nacional do Petróleo, Gás Natural e Biocombustíveis ("ANP") made available for public consultation a draft regulation seeking to revise unitization rules.
To download the draft regulation, please click here. Suggestions and comments to the draft regulation must be submitted to ANP by no later than April 16, 2013, either by e-mail (email@example.com), fax (+55 21 3797 6399), or in person at ANP′s headquarters in Rio de Janeiro. A public hearing at which ANP will respond to such comments is expected to be held on May 10, 2013, at ANP headquarters. Those who wish to attend the public hearing must register with ANP by May 6, 2013.
Analysis of the draft resolution reveals the following:
Notification procedure. The operator will have ten (10) days to inform ANP of the existence of a pool outside of its area, counted from the time concessionaires become aware of such extension. Agreement for the Individualization of Production ("AIP"). In the event the pool extends to an area that is subject to a concession, production sharing agreement, or assignment regime with different companies or consortia, the parties must enter into an Agreement for Individualization of Production ("AIP"). Execution of the AIP with the Federal Government. If the pool extends to an area which is not subject to a concession or any other regime ("open acreage"), the parties must enter into the AIP directly with the federal government, based upon the assessments and technical information provided by ANP. In this case, if the pool extends to an area located in the pre-salt or other areas deemed strategic by the government, the federal government will be represented by Pré-Sal Petróleo S.A. ("PPSA"). If the pool is not located in a strategic area, the federal government will be represented by ANP. Commitment of Individualization of Production. In the event the pool...