The Permanent Offer consists of continuous offers of fields and blocks returned (or in the process of being returned) and of blocks offered in previous bids and not acquired.
On April 11, 2018, at the Board of Executive Officers Meeting No. 118/2018, the inclusion of 46 unacquired blocks in the 15th Round of Bids, held on March 29, 2018 was approved. With this, the First Cycle of the Offer will have 884 blocks in onshore and offshore basins with exploratory risk and 14 areas with marginal accumulations in 15 sedimentary basins, totaling 346,034.94 km². Of this total of 884 blocks 148, distributed in 8 sedimentary basins, are being offered, since they already have their environmental analysis. The other 736 blocks will have their bidding started as soon as their environmental analysis has been completed and a public hearing has been held on the subject.
Unlike the traditional rounds, in order to hold a public session of the Permanent Offer, it will be necessary for a company to present a declaration of interest accompanied by an offer guarantee for a particular sector(s). Only after the approval of this guarantee by the Special Bidding Committee (“CEL”), will the bidding schedule for the sector of interest begin.
The CEL will then publish the dates of: (i) registration and payment of the participation fee; (ii) presentation of offer guarantees accompanied by declarations of interest; (iii) holding the public bidding session; (iv) determination of the winning bidders and, finally; (v) ratification of the bidding and signing the concession agreements. The public bidding session must take place no later than 90 days after the approval of the guarantee.
The schedules of the cycles of the Permanent Offer will be published on the ANP website whenever a new cycle begins. They will include dates and deadlines regarding payments, delivery of documents and other relevant information.
Registration to participate in the Permanent Offer began on May 2, 2018. After registration, interested parties may express interest in the blocks and fields included in the First Cycle of the Offer at any time. Below, the schedule for the first stage of the Permanent Offer.
|Publication of blocks and areas with marginal accumulations||11/30/2017|
|Evaluation of areas and blocks by interested persons||As of 11/30/2017|
|Publication of rules for holding and participation in the permanent offer||04/27/2018|
|Publication of the technical and economic parameters of the areas and blocks||04/27/2018|
|Start of registration||05/02/2018|
|Start of the deadline for the submission of an offer guarantee accompanied by a declaration of interest||As of 07/20/2018|
|Offer presentation||As of 11/01/2018|
|Operator A||Qualified to operate in blocks located in ultradeep waters, deep waters, shallow waters, onshore and in areas with marginal accumulations|
|Operator B||Qualified to operate in blocks located in shallow water, onshore and in areas with marginal accumulations|
|Operator C||Qualified to operate only in blocks located onshore and in areas with marginal accumulations|
|Operator D||Qualified to operate only in areas with marginal accumulations; and|
|Non-Operator||Qualified to act in a consortium.|
Offers for blocks with exploratory risk must be composed of the amount of the signature bonus and the minimum exploratory program (“PEM”). Offers for areas with marginal accumulations will comprise exclusively the value of the signature bonus.
It is interesting to note some particularities of the Permanent Offer, such as:
- The flexibility of the tender protocol, in which new areas may be included and/or areas acquired excluded during the Permanent Offering process;
- The percentage reduction (from 100% to 30%) required as financial guarantee for compliance with the PEM offered by the bidders; and
- The reduction of the minimum signature bonus for mature basins and for the Tucano Sul Basin (fixed signature bonus of R$ 50,000).
The local content commitment required in the permanent offer must be in accordance with the table below:
|Exploration Stage||Production Development Stage|
|Offshore Blocks||18%||Well Construction||25%|
|Collection and Drainage System||40%|
|Stationary Production Unit||25%|
The ANP is already planning the Second Cycle of the Permanent Offer which will bid 1,039 blocks in 20 mature sedimentary basins and in new frontiers. The rules for participation and the technical and economic parameters of the second stage of the Permanent Offering will be announced by the end of December 2018.