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Law No. 9,478 / 1997, known as the Petroleum Law, completed 20 years ago yesterday

08/09/2017 | 00h24
Law No. 9,478 / 1997, known as the Petroleum Law, completed 20 years ago yesterday
T&B Petroleum T&B Petroleum

On August 6 was celebrated the 20 years of Law 9,478 / 1997, known as the Oil Law, which created the National Agency for Petroleum, Natural Gas and Biofuels (ANP). 

The Law was an important milestone for the oil and natural gas sector to determine the end of Petrobras' monopoly in oil exploration, exploration, production and refining activities. 

These activities continued to be a monopoly of the Union, but could be exercised by other companies, through concession, authorization or hiring under the system of production sharing. 

The rounds of bids, made since 1998 (Round Zero), attracted about 100 companies to the exploration and production activities in the country. Due to these auctions, important discoveries were made, including the pre-salt layer.


Creation of ANP 

Law 9,478 / 1997 established the ANP as the regulatory body for the activities that integrate the oil and natural gas and biofuel industries in Brazil. The legislation thus allowed the implementation of the Agency, which was subsequently given by Decree No. 2.455, dated January 14, 1998. 

Linked to the Ministry of Mines and Energy, the ANP became the federal agency that executes the national policy for the sector, focused on guaranteeing the supply of fuel and protecting the interests of consumers. 

Since then, the Agency has established itself as a reference in its areas of activity, which focus on three main guidelines: 

Regular - Establish rules for the operation of industries and of the oil and gas and biofuel trade; 

Contract - Promote bids and sign contracts on behalf of the Union with concessionaires in exploration, development and production of oil and natural gas, and authorize the activities of regulated industries; 

Supervise - Enforce standards in the activities of regulated industries, either directly or through agreements with other public agencies.


The ANP is also a reference center for data and information on the oil and natural gas industry: it maintains the Exploration and Production Database (BDEP), promotes studies on oil potential and the development of the sector; Receives and makes public disclosure notifications; Publishes official statistics on reserves and production in Brazil; Conducts periodic surveys on the quality of fuels and lubricants, and on the prices of these products. In the area of biofuels, it maintains and disseminates data on authorizations, production and commercialization of biodiesel and ethanol.


Current sector moment 

Twenty years after the publication of the Petroleum Law, the industry is experiencing the most transformative and open period since the creation of Petrobras in the 1950s. 

These are changes at all stages of the chain, such as: the end of the mandatory operation of Petrobras in the pre-salt; Company divestment plans; Implementation of a multi-year round plan for the first time; Changes in local content policy; And federal programs to encourage specific sectors such as biofuels and fuel distribution and resale. 

From this window of opportunities that the country lives, the ANP has been intensifying actions in order to encourage and unlock investments, such as: 

- Execution of the bidding rounds; 

- Improvement of concession contracts; 

- Encouraging extension of oil and gas field life; 

- Encouragement of the development of a natural gas market that serves the interests of society; 

- Promotion of investments in the production, distribution and resale of petroleum products and biofuels. 

Today, the Brazilian oil and gas industry accounts for 11% of industrial GDP and 50% of domestic energy supply. There are 94 economic groups operating in the exploration and production activities, and more than 126 thousand agents in the activities of distribution and resale of fuels. 

In recent years, billions of reais have been invested in the activities of industry and technological development, generating thousands of jobs, developing national industry and billions in government participation.


Font: T&B Petroleum/ANP Press Office
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