The Federal Government published, this Thursday (08/18), Decree No. 11,175, of August 17, 2022, which amends Decree No. 2,705, of August 3, 1998, to allow the National Agency of Petroleum, Gas Natural and Biofuels (ANP) includes, in its regulatory agenda, a review of the methodology used to calculate the reference prices used to calculate government participations applicable to the exploration, development and production of oil and natural gas (E&P).

The current global geopolitical situation has led to the need for a reassessment by the ANP, with emphasis on the effects of the Covid-19 pandemic and the recent conflict in Eastern Europe on the international oil market. In addition, the change in the specification of marine fuels within the scope of the International Maritime Organization (IMO), which determined new maximum limits for the sulfur content of products, also had an influence.

With the new decree, the ANP can advance in this debate following its regulatory rite, contemplating a broad dialogue with society. Additionally, the measure provides guidelines for the agency to consider aspects of the commercialization of oil and natural gas production by small and medium-sized companies. The objective is to improve regulation and make it more adherent to the new scenario of the E&P segment in the country, with multiple agents, including small and medium producers.

In this way, the ANP will be able to correct eventual distortions in the reference price methodology and, at the same time, reinforce public policies aimed at increasing the participation of small and medium-sized companies, with emphasis on the Exploration Activity Revitalization Program and Production of Oil and Natural Gas in Land Areas (Reate) and the Program for Revitalization and Incentive to the Production of Offshore Fields (Promar).

In the context of the transformation of the E&P segment in Brazil, the measure guarantees an adequate return for society on the production of national oil resources. Thus, the measure maintains the governance, legal certainty and predictability of the regulatory process, which are driving forces for attracting investments and developing Brazilian oil production, generating more jobs and more income in the country.