Highlights of the changes made in the Initial Tender Protocol compared to past concession bid rounds
I – Introduction
Yesterday, the ANP published the Initial Tender Protocol and the draft of the Concession Contract of the 14th Concession Bid Round that maintains the structure used in the recent concession bid rounds where the qualification procedure is done only after the offers presentation date. By doing so, the interested parties to participate shall collect the data package upon payment of a participation fee along with the presentation of a short list of documents and subsequently present the offers on September 27th, 2017. Only the winner bidders shall provide the qualification documents afterwards.
The Initial Tender Protocol and the draft of the Concession Contract are open for analysis and comments.
Although still an Initial Tender Protocol, that may be amended by the ANP after the comments and contributions by third parties to be sent until June 19th, 2017, the main events regarding the ANP’s 14th Concession Bid Round are scheduled to occur on the following dates:
|Beginning of the period to fill in the on-line application form, pay the participation fee and provide concise documentation (to collect the data package)||May 18th|
|Due date to send comments to ANP regarding the Initial Tender Protocol and the draft of the Concession Contract||June 19th|
|Public hearing (to occur in the City of Rio de Janeiro)||June 27th|
|Publication of the Final Tender Protocol and the Final version of the Concession Agreement||July 20th|
|End of the period to fill in the on-line application form, pay the participation fee and provide concise documentation (to collect the data package)||August 4th|
|Deadline to provide the Bid Guarantee||September 12th|
|Date of the ANP’s 14th Concession Bid Round||September 27th|
|Due date to the winner bidder provides the qualification documents||October 2nd|
|Due date to the winner bidder provides the execution of the Concession Contract and payment of the signing bonus||until December 22nd|
|Official execution of the Concession Contract||until January 31st, 2018|
II – Offer presentation
Unlike the structure used in the previous concession bid rounds, for the ANP’s 14th Concession Bid Round the local content will not be a factor to decide the winning bidder. Thus, the criteria to decide the winner will be:
III – Local Content
As mentioned above, the local content commitments shall not be used as judgement criteria in this bid and, as provided in the CNPE’s Ordinance No. 07/2017, the minimum local content mandatory for this round shall be the following:
IV – Royalties
The royalties’ rate varies between 5% and 10% according to the offered area. However, there may be situations that the royalties may be increased to 10% (i.e. reservoirs paying special participations) or reduced to 5% (i.e. additional production derived from the new investment plan to be executed in the field when its term is duly extended).
V – Exploration Phase
The Exploration Phase is not divided in two periods anymore, as used to be in the past concession bid rounds. In the ANP’s 14th Concession Bid Round, the exploration phase shall be done in one single period that varies from 5 to 7 years, according to the area, and may be extended in accordance with the events established in the Concession Agreement.
For further information regarding how to apply, the qualification procedures and any other issue regarding the ANP’s 14th Concession Bid Round, please contact Luis Menezes (email@example.com), our partner responsible for the Oil and Gas Department.
OIL AND GAS DEPARTMENT
This article is intended exclusively to provide information and does not contain any opinion, recommendation or legal advice from Felsberg Advogados in relation to the issues addressed.