On April 10, 2014, the Brazilian Agency of Petroleum, Natural Gas and Biofuels ("ANP") established the requirements to be met by holders of rights for exploration and production of oil and natural gas that will perform the technique of hydraulic fracturing in unconventional reservoirs.

The regulation establishes that the technique may only be used in wells that are at least 200 meters apart from any wells containing water used for domestic, public or industrial supply, among other human uses. In addition, the operator must submit a detailed environmental plan for treatment and disposal of solid waste resulting from the use of the technique.

The regulation of hydraulic fracturing was submitted to a public hearing in November 2013 and its enactment was expected since then specially because areas with potential for unconventional gas were auctioned during the 12th Oil & Gas Bidding Round.

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