The ANP published today (19/4) guidelines for the analysis of Development Plans (PDs) with requests for extension of the production phase and/or reduction of the royalty rate on incremental production. Such guidelines indicate the minimum necessary content that must be submitted by companies holding oil and/or natural gas exploration contracts for the approval of PDs by the ANP. They apply to both land and sea fields.

Such guidelines aim to provide speed and efficiency in the analysis process of these Development Plans, consolidating the lessons learned in the analyzed cases and the existing legal bases. In addition, they provide publicity and transparency to contractors, as part of the Agency's set of good public governance practices.

The guidelines for evaluating Development Plans delivered to the ANP aiming at extending the production phase, as well as reducing the royalty rate on the incremental production that accompany them, are provided for in ANP Normative Instruction No. 11/2022. The procedure for granting royalty reductions as an incentive for incremental production in mature fields must follow the provisions of ANP Resolution No. 749, of 09/21/2018.

What is a Development Plan
The Development Plan (PD) is the document that specifies the work program, schedule and respective investments necessary for the development and production of a discovery or set of discoveries of oil and natural gas in the area under contract, including its abandonment.

The PD must be submitted for approval by the ANP, within a maximum period of 180 days after the declaration of commerciality (DC), and thereafter whenever there is a need for revision. A formal written notification from the company to the ANP, in which it declares one or more deposits as a commercial discovery in the area under contract.
The regulation that currently establishes the contents and procedures for the preparation of the PD is ANP Resolution No. 17/2015. The main functions of the PD are: to allow the monitoring of activities by the ANP and demonstrate compliance with laws, rules and regulations, in addition to the application of best practices in the oil and natural gas industry.

Access the Guidelines for the Analysis of Development Plans (PDs) with Requests for Extension of the Production Phase and/or Reduction of the Rate of Royalties on Incremental Production: Click here!

See further information on Development Plans: Click here!