The National Agency of Petroleum, Natural Gas and Biofuels (ANP) sponsored on February 5th, 2015, Public Hearing No. 1/2015, to discuss the draft of a new Resolution containing new procedures to the ANP bid rounds for the concession of oil and gas (O&G) blocks for exploration and production (E&P) activities. The Agency received suggestions to the draft Resolution, which were addressed during the Public Hearing by the Superintendent of the Bid Promotion Superintendence, Ms. Cláudia Rabello.

The Superintendent made her presentation indicating that ANP is focusing on the refinement of the Brazilian regulatory model seeking more efficiency to the O&G sector, reason why ANP carried out extended researches and internal discussions to achieve the model proposed altering the sequence of the bidding steps. It was also highlighted by the agency that the main benefits to bidders in the new proposed model are: simplification in the technical and legal qualification procedures as ANP will be allowed to consider the experience of the bidders already operating under other concession contracts in Brazil, and further the digital database under development by ANP to keep updated qualification information submitted by the agents to ANP in the past.

Among the main suggestions presented by market players to the draft Resolution are those of the Brazilian Petroleum, Natural Gas and Biofuels Institute – IBP (IBP), alerting about Section 15 of the draft Resolution, which might result in additional costs to the non-winning bidder or to the concessionaire in case ANP requires the participants to maintain the bid bonds for a period longer than the execution date of the concession contract. IBP also expressed concern with the uncertainty that may be associated with altering the sequence of the bidding steps under the proposed model.

As discussed in our previous Client Alert on this matter ( click here to have access to our last Client Alert on this matter), the amendment to the sequence of the bidding steps set forth in the draft Resolution shifts the moment for the submission of the bid bonds and the bid proposals to a stage that precedes qualification, which shall be restricted to the winning bidder(s).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.