Memorandum – Infrastructure (04/07/2013)

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

CNPE Approves Financial and Technical Parameters for Upcoming Pre-Salt Bid Round

CNPE RESOLUTION No. 5/2013

Brazil′s energy policy council, CNPE, published today CNPE Resolution No. 5, establishing the financial and technical parameters for the first bid-round for Brazil′s offshore pre-salt areas. Important issues include: Signature bonus The signature bonus to be paid to the Government was fixed at R$15 billion (approximately US$7.5 billion). Government take The calculation of the percentage of oil destined for the Government must consider the signature bonus, development in individualized production modules, and the cash flow during the contract. The minimum percentage of the government take to be offered is 40%, assuming a price per barrel of oil of US$105.00. Petrobras′ minimum participation Petrobras′ minimum mandatory participation will be 30%. Cost oil calculation and limit Only expenses incurred by contractor from the performance of the activities under the production sharing contract and approved by the operating committee, having as a reference expenses typically incurred in such activities and according to oil industry best practices, can be defined as cost oil. The contractor may recover the cost oil on a monthly basis, limited to 50% of the gross value of production in the first two years...

To continue reading

REQUEST YOUR TRIAL