On May 16, the ANP held a public hearing on a proposal for a resolution that gives companies holding contracts for the exploration and production of oil and gas the possibility of extending, for a period of 18 months, the terms of the first phase of these contracts, which is that of exploration.

“By taking into account the impacts derived from a conjunctural context, aggravated by the Covid-19 pandemic, to avoid the extinction of E&P contracts in the exploration phase, the country also seeks to minimize the negative impacts on suppliers of goods and services for the exploration and production sector”, stated Marina Abelha (photo), Superintendent of Exploration. She also highlighted the importance of the measure for society in general, which could benefit from the eventual discovery of new oil and natural gas deposits, the generation of jobs and the promotion of the country's economic development.

The elaboration of the standard meets an industry demand and became possible with the publication of CNPE Resolution nº 12/2021, which recommended to the Agency the evaluation of the adoption of measures for the extension of the exploration phase of the concession and sharing current production. The objective is to minimize the negative impacts generated by the scenario of uncertainties in the oil and gas industry, derived from a conjunctural context, aggravated by the Covid-19 pandemic.

The exploration phase begins with the signing of the contract. In it, the explored areas are called blocks, and the companies carry out studies and activities (such as seismic surveys and well drilling) to detect the presence of oil and/or natural gas in sufficient quantity to make its extraction economically viable. If so, the company presents a declaration of commerciality to the ANP and the block (or part of it) becomes a producing field, initiating the production phase. If not, the company can return the block (or part of it) to the ANP.

The draft resolution also underwent public consultation. The suggestions received in the consultation and in the hearing will be evaluated by the technical area, for alteration or not of the original draft. The consolidated text will undergo legal analysis by the Federal Prosecutor's Office with the ANP and approval by the Agency's collegiate board, before its publication.

+ See the recording (Portuguese) of the audience