Memorandum – Infrastructure (03/06/2013)

Author:Mr Giovani Loss, Nilton Mattos and Felipe Feres
Profession:Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados

One week after the Brazilian National Council on Energy Policy authorized the First Pre-Salt Bid Round, last Friday, May 31st, the Brazilian National Agency for Petroleum, Natural Gas and Biofuels ('ANP') published a draft regulation setting forth guidelines for the rules to be adopted in bid rounds for Pre-Salt and strategic areas, which exploration and production rights will be granted under the production sharing regime ('Draft Regulation'). According to the Draft Regulation, the tender protocol will be published in the Official Gazette upon approval by the Brazilian Ministry of Mines and Energy (MME), and will contain the following information, among others:

information on the areas to be offered in the relevant bid round; the schedule for the bid round; the limits, terms, criteria and conditions for calculation of the cost oil and its appropriation by contractors; the minimum amount of the Federal Government's profit oil; the criteria for definition of contractors' profit oil; the obligation to form a consortium with Pre-Sal Petróleo S.A ('PPSA') and Petrobras, with due observance to Petrobras' minimum participation (30%); the amount of the participation fees; the criteria and documents required for qualification of the bidders; the minimum work program and estimated investments; the amount of the signing bonus and the portion...

To continue reading