Nome da Apresentação

NBome

Claudia RabelloLicensing Rounds Promotion Superintendent - ANP

Brazilian Bidding Rounds

Brazilian Federal Constitution, article 177:• O&G Exploration and Production activities are monopoly of the

Union;• Union may allow granting of E&P activities.

Law no. 9.478/97:• CNPE and ANP were created.

ANP’s duties: regulating, contracting and inspecting:

Tender Protocols and Contracts; Bidding Rounds; andExecution of contracts.

Legal framework

Timeline Previous bidding rounds

1997

Law no. 9478Petroleum Law

CNPE / ANP

1999

Round 1

2001

Round 3

2002

Round 4

2003

Round 5

2007

Round 9

Round 2

20001998

Round Zero

2008

Round 10Offshore

1995

Constitutional Amendment

no. 9

2010

Law no. 12276Onerous Assignment

Petrobras

Law no. 12351PSC and Social Fund

Law no. 12304PPSA

2009

Law no. 11909Gas Act

2004

Round 6

2013

Round 11

Law no. 12734Royalties

Distribution

20122005

Round 7

2006

Round 8Canceled

11th Bidding RoundConcession Agreement

11th Bidding RoundScope

289Blocks

23 Sectors

11 Sedimentary

basins

@155,800 km²Area on offer

11th Bidding RoundResults

Qualified companies64

Brazilian17

Foreign47

Bidding companies39

Brazilian12

Foreign27

Winning companies30

Brazilian12

Foreign18

New operators6

11th Bidding RoundResults

Offered blocks289

Awarded blocks142

Onshore87

Offshore55

Offered area155,813 km²

Awarded area100,372 km²

Onshore64,998 km²

Offshore35,374 km²

11th Bidding RoundResults

Participation fee (R$)33.4 millions

Signature bonuses (R$)

2.8 billions

MWP (WU)398,934

MWP (R$)6.9 billions

Average LC(exploration)

62,25%

Average LC(development)

75,97%

11th Bidding RoundRecord numbers

R1 R2 R3 R4 R5 R6 R7 R9 R10 R11

3844 42

29

12

24

44

61

40

64

Qualified companies

R1 R2 R3 R4 R5 R6 R7 R9 R10 R11

321.7 468.3 594.9

92.4 27.4

665.2

1,085.8

2,109.4

89.4

2,821.5 Signature Bonuses (R$ million)

R5 R6 R7 R9 R10 R11

363.5

2,046.8 1,797.4 1,367.4

611.2

6,891.3 Minimum Exploratory Program (R$ million)

R1 R2 R3 R4 R5 R6 R7 R9 R10 R11

4248

44

33

14

27

45

66

43

68Companies that pay participation fee

11th Bidding RoundObjectives

• Expand Brazilian reserves and knowledge of sedimentary basins;

• Decentralize exploratory investment in Brazil;

• Increase the participation of small and medium-size companies;

• Retain domestic and foreign companies in Brazil, continuing demand for local goods and services, job creation and income distribution.

12th Bidding RoundConcession Agreement

12th Bidding RoundSchedule

Jul 09

Public Hearing

Oct 30 and 31

Bid days

Aug 08

Tender ProtocolConcession Agreement

Model

Jun 17

Preliminary Tender Protocol

Concession Agreement

Draft

Jan 2014

Signing of Concession

Agreements

Sep 24

End of qualification

period

Pending CNPE’s approval

São Francisco Basin

Parnaíba BasinAcre Basin

Paraná Basin

Recôncavo Basin

Sergipe-Alagoas Basin

12th Bidding RoundSedimentary basins

Parecis Basin

12th Bidding RoundInfrastructure

Source: ANP Statistical Yearbook, 2012Proposed

State Limit

Flows (operation)Flows (construction)TerminalsUPGNs

ConstructionOperation

Capitals

Legend

Source: ANP and PetrobrasLNG Terminals

Gas Pipelines

Gas Pipelines under construction

1999 3,705 km of gas pipelines

20129,489 km of gas pipelines

12th Bidding RoundGas pipelines

Source: ANP and PetrobrasProposed

Source: http://sigel.aneel.gov.br/

12th Bidding RoundTransmission lines

1st Pre-salt Bidding RoundProduction Sharing Agreement

The 1st Pre-salt Bidding Round

November2013

1st Pre-salt Bidding Round

“Libra”

2-ANP-2A-RJS

27 API oilVOIP

@18 billion barrels

Others

Libra Prospect– Fast track – Salt base – mapping in time

2-ANP-2A-RJS

1st Pre-salt Bidding RoundForcasted areas

• Petrobras - mandatory operator with at least 30% participation;

• Bidding Rounds criteria of offers: the greater split oil;

• Signature Bonus, Minimum Work Program and Local Content are defined in Tender Protocol;

• Union does not assume the risks or incurs expenses;

• Union may contract Petrobras directly;

• Term of the contract: 35 years

1st Pre-salt Bidding RoundLaw no. 12.351/10

ANP – Regulatory Agency:

• Promotes the Bidding Rounds;

• Follows the contracts execution;

• Inspect the activities.

PPSA – State Company:

• Represents the Union in the consortium;

• Audits and approves the costs oil;

• Chairs the Operational Committee;

1st Pre-salt Bidding RoundLaw no. 12.351/10

www.brasil-rounds.gov.br

Claudia Rabello

Licensing Rounds Promotion Superintendence

rodadas@anp.gov.br

http://www.brasil-rounds.gov.br

http://www.anp.gov.br