Within the scope of the General Strategy for Awarding Petroleum Concessions (2019-2025), the President of the Republic approved the rules and procedures for the awarding of petroleum concessions under a permanent offer regime, by means of Presidential Decree No. 249/21, of 5 October 2021 (“PD 249/21”).

Under the new statute, (i) blocks offered but not awarded, (ii) free areas relinquished to the State; and (iii) concessions awarded to the National Agency for Petroleum, Gas and Biofuels (Agência Nacional do Petróleo, Gás e Biocombustíveis, “ANPG”), in its capacity as National Concessionaire for the Petroleum Sector, may be integrated in the permanent offer regime.

The inclusion of the blocks, areas and concessions in the permanent offer regime depends on a duly grounded proposal from ANPG and the approval of the Ministry of Mineral Resources, Petroleum and Gas, and they are to be promoted through public tender, direct negotiation or limited tender procedure.

PD 249/21 also sets forth the procedures applicable to direct negotiations and limited tenders (e.g. steps and deadlines), as well as the eligibility requirements for acquiring the status of associate of ANPG, as operator and non-operator.

Contracts in respect of blocks, areas and concessions under the permanent offer regime which do not comply with the provisions of PD 249/21 are deemed null and void. The statute entered into force on the date of its publication.

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