On November 27, 2020, Brazil's National Agency of Petroleum, Natural Gas and Biofuels ("ANP") published the draft tender protocol ("Draft Tender Protocol") for the 17th Concession Bid Round ("17th Bid Round") for exploratory blocks, establishing the procedures and rules for participation in the bid, as well as the concession contract draft, the preliminary schedule, and information regarding the offered areas.
The 17th Concession Bid Round was temporarily suspended in April 2020 due to the COVID-19 pandemic and was resumed by the ANP after a decision of the National Energy Policy Council ("CNPE") to hold the bid round in 2021, as detailed in our previous Legal Update on CNPE Resolution No. 07/2020.
The 17th Concession Bid Round will offer 92 blocks in the Campos, Pelotas, Potiguar and Santos sedimentary basins, encompassing a total area of 53.9 thousand km2. Three blocks of the Santos Basin (sector SS-AUP5) are partially located beyond the 200 nautical mile limit from the Brazilian baseline and may contain deposits located beyond such limit.
Pursuant to the draft concession contract, the concession contracts for the SS-AUP5 sector blocks shall include an additional clause establishing that the signatory will be responsible for paying the amounts due to the International Seabed Authority – ISA under the terms of article 82 of the United Nations Convention on the Law of the Sea – UNCLOS.
The technical data package is already available, and interested bidders must (i) fill out the electronic registration form; (ii) submit the registration documents required by the Draft Tender Protocol, such as the company's corporate documents and the evidence of powers of its legal representatives or attorneys-in-fact and the confidentiality agreement; and (iii) pay the participation fee for the specific sector of interest. The 17th Concession Bid Round will follow the schedule below.
|Publication of the Draft Tender Protocol and the draft concession contract||November 27, 2020|
|Commencement of the period for fulfillment of registration forms, delivery of registration documentation and payment of the participation fee||November 27, 2020|
|Technical data package availability
||November 27, 2020|
|Deadline for comments to the Draft Tender Protocol and to the draft concession contract, and end of the public consultation||January 28, 2021|
|Public hearing (city of Rio de Janeiro)||February 3, 2021|
|Publication of the tender protocol and the concession contract||July 27, 2021|
|Technical seminar||To be defined|
|Environmental and fiscal-legal seminars||To be defined|
|Deadline for the fulfillment of registration forms, submission of registration documentation and payment of the participation fee||August 11, 2021|
|Deadline to present the offer bid bonds||September 22, 2021|
|Public session for the presentation of offers||October 7, 2021|
|Deadline for the submission of the following documents: (i) qualification documents (winning bidder) and (ii) additional bid bond provided in section 6.4, item (v), when applicable||October 18, 2021|
|Award and ratification of the bid||By December 17, 2021|
|Deadline to present the financial guarantee of the Minimum Exploratory Program in the form of an oil and natural gas pledge||December 21, 2021|
|Deadline to submit the following documents related to (i) the execution of the concession contract (except the financial guarantee of the Minimum Exploratory Program in the form of an oil and natural gas pledge); and (ii) the qualification of the affiliate appointed for the execution of the concession contract, when applicable.||February 16, 2022|
|Deadline for payment of the signing bonus and submission of the evidence of payment||February 16, 2022|
|Execution of the concession contracts||By March 31, 2022|
The 17th Concession Bid Round uses the same electronic mechanism system used in the 16th Concession Bid Round for the presentation of documents. The Draft Tender Protocol establishes that the required documentation must be uploaded through the Electronic Information System ("SEI") pursuant to the instructions provided in the "SEI External User Manual" and the "Manual for Submission of ANP Bidding Documents on SEI," which is available on the ANP/Rodadas website (Portuguese only).
In addition to the digital submission through SEI, the original versions of the financial guarantees of the Minimum Exploratory Program and the performance guarantees must also be submitted in hard copy to ANP. The bid bonds must be submitted to the ANP in hard copy only.
The Draft Tender Protocol is available on the ANP/Rodadas website (Portuguese only). All documents are available for public consultation by January 28, 2021, and inputs may be made by both the industry and the general public.
We will keep you posted on the development of the 17th Concession Bid Round through our Legal Updates.
Visit us at Tauil & Chequer
Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."
© Copyright 2020. Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. All rights reserved.
This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.