Brazil: 16th Concession Bid Round –Tender Protocol And Concession Contract Drafts

On March 25, 2019, Brazil's National Agency of Petroleum, Natural Gas and Biofuels – ANP ("ANP") published the draft tender protocol ("Draft Tender Protocol") for the 16th Concession Bid Round ("16th Concession Bid Round") for exploratory blocks, establishing the procedures and rules for participation in the bid, as well as the concession contract draft, the preliminary schedule, and information regarding the offered areas.

The 16th Concession Bid Round will offer 36 exploratory blocks located in 5 sedimentary basins: Camamu-Almada, Campos, Jacuípe, Pernambuco-Paraíba and Santos.

The technical data package is already available, and the interested bidders must (i) fill out the electronic registration form; (ii) submit the registration documents required by the draft tender protocol, such as the company's corporate documents and evidence of powers of its legal representatives o r attorneys-in-fact and the confidentiality agreement; and (iii) pay the participation fee, in accordance with the specific sector of interest. The 16th Concession Bid Round will follow the schedule below.

Among the innovations of the Draft Tender Protocol is the obligation to submit the required documentation by uploading it through the Electronic Information System ("SEI"), pursuant to the instructions provided in the "SEI External User Manual" and the "Manual for Submission of ANP Bidding Documents on SEI" available on ANP/Rodadas website (Portuguese only).

In addition to the digital submission through SEI, the original versions of the (i) bid bonds, (ii) financial guarantees of the minimum exploratory program, and (iii) performance guarantees must also be submitted in hard copy to ANP.

The Draft Tender Protocol is available on the ANP/Rodadas website (Portuguese only). All documents are available for public consultation by April 09, 2019, and inputs may be made by both industry and the general public.

We will keep following the development of the 16th Concession Bid Round, and will keep you posted through our Legal Updates. We remain available to you for further clarification or information.

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This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.