On January 19th, 2017, the ANP published the Tender Protocol and the Concession Contract template for the 4th Marginal Fields Bid Round, which offers concessions for the rehabilitation of, and production from, mature basins. Nine areas with marginal accumulations will be offered in in the Espírito Santo, Potiguar and Recôncavo basins.  Note that the Tender Protocol expressly forbids the utilization of hydraulic fracking in non-conventional reservoirs in the offered basins.

In the Itaparica and Noroeste do Morro Rosado areas, the ring fences of these areas are located partially on land and in shallow waters, due to the fact that the oil deposits extend into maritime areas.

The minimum qualification required by the ANP to operate in the onshore areas is as “Operator D”. However, if a bidder intends to operate in areas with a marginal maritime accumulation, it must obtain the relevant environmental licenses, as well as be qualified as “Operator B” before the ANP. A bidder which demonstrates net equity of seven hundred thousand Reais (R$ 700,000.00) may pass the economic test to be qualified as “Operator D” and operate in areas with onshore marginal accumulations only. In order to operate in shallow waters, an interested party must qualify as “Operator B”, and demonstrate net equity of sixty-seven million Reais (R$ 67,000,000.00), as set forth in the Tender Protocol. In addition, the qualification phase includes the assessment by the ANP of documents proving the technical experience of the bidder and the absence of hindrances to engage in the bid.

The 4th Marginal Fields Round will not require compliance with any local content commitment. The signature bonus will be the sole criterion for selecting the winning bidder. The royalty rate is fixed at 5%.

Despite not being a constituent part of the offer, bidders must carry out a minimum work program to evaluate an area with marginal accumulations (“Initial Work Program – PTI”), during the rehabilitation period, the cost of which may vary between seven hundred thousand Reais (R$ 700,000.00) and  two million and eight hundred Reais (R$ 2,800,000.00), depending on the area.

Failure to carry out more than 30% of the PTI may result in the application of a fine as stated by clause 5.12 of the Concession Contract.

The Tender Protocol sets out the following schedule for the bidding procedure:

To participate in the bid, companies must (i) complete the electronic application form available at http://www.brasil-rounds.gov.br, (ii) pay the participation fee, (iii) submit Annex IV of the Tender Protocol informing the sectors of interest, and (iv) submit the other registration documents listed in the Tender Protocol, section 4.2. The deadline for application ends on February 3rd, 2017. The values of the participation fees are set out below:
The Shapefiles of the areas can be accessed at: http://www.brasil-rounds.gov.br/Round4_AM/portugues_R4AM/setores.asp

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