Highlights Of MME Ordinance No. 218 Of June 21, 2013

Author:Mr Giovani Loss, Bruno Werneck and Pablo Sorj
Profession:Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados

Ordinance No. 218/2013 of the Ministry of Mines and Energy (Ministério de Minas e Energia - "MME") went into effect on June 21, 2013. Such Ordinance establishes general guidelines for the Brazilian Oil, Natural Gas, and Biofuels Agency (Agência Nacional do Petróleo, Gás Natural e Biocombustíveis - "ANP") to promote the first bid round under the production sharing regime.

Such guidelines include the following:

Qualification as "Operator A". Bidders will have to be qualified as an "Operator A", according to ANP?s criteria. In the event bidders decide to present their bids as a consortium, only one company will have to be qualified as Operator A. Profit oil sharing. The split of the profit oil between the contracted party and the Government will vary according to the price of the barrel of oil and the average production per producing well. The calculation of this average production will not consider wells with technical and...

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