The Workshop on Assignment of E&P Contracts was held on 7/4 by the ANP. The virtual event brought together representatives of oil and natural gas exploration and production (E&P) companies with Agency technicians, who provided information and guidance on contract assignment processes.

At the opening of the event, the Director General of the ANP, Rodolfo Saboia, recalled that the optimization of the assignment processes was one of the topics discussed in the issues of Mesa Reate (Program for the Revitalization of the Exploration and Production of Oil and Natural Gas in Areas Land). For Savoie, the seminar held today is another step by the Agency to speed up the process, especially in the current market scenario.

“The assignment of contracts, alongside bids, is the means of entering exploration and production activities in Brazil. This market remains heated due to the dynamics of the industry itself and the interest of companies to participate in Petrobras' divestment opportunities. The number of transfer cases proves this. In the last five years - from 2016 to 2020 -, 190 assignment processes were initiated and had an ANP decision, covering a total of 287 contracts. In the same period, 159 exploration and production contracts from bidding rounds were signed. In other words, around 65% of the acquisition of exploration and production rights in the country were granted through the assignment process ”, said the Director General of ANP.

In the workshop, Agency technicians presented guidelines for the correct procedural instruction and information on the non-conformities most frequently identified in the processes, as well as the conditions normally imposed by ANP decisions, in order to avoid delays and speed up the process.

The event was held through the Microsoft Teams platform, with live transmission through the ANP channel on YouTube.

+ See the recording of the workshop on YouTube

What is the assignment of E&P contracts 

Assignment is the transfer, in whole or in part, of the ownership of rights and obligations arising from the E&P contract. It is permitted by Laws 9.478 / 1997 and 12.351 / 2010, provided that: the object and the contractual conditions are preserved; the assignee meets the technical, economic and legal requirements established by the ANP; and there is prior and express authorization from the Agency, in the case of concession contracts, or from the Union, in the case of production sharing contracts.

The assignment process, regulated by ANP Resolution No. 785/2019, is the administrative process designed to analyze the request and authorize: the assignment of an E&P contract; the change of concessionaire / contracted due to merger, spin-off and incorporation; the change of operator; and the replacement or exemption from the performance guarantee. The assignment can only be consummated with the signature of the addendum, after prior and express approval by the ANP granted in the context of the assignment process.