Modernizing Brazils oil & gas legal framework Andr CORRA DO - PowerPoint PPT Presentation

Modernizing Brazil’s oil & gas legal framework André CORRÊA DO LAGO Brazil’s Ambassador to Japan JOGMEC Techno Forum (Tokyo, November 29th, 2016)

1. Overview of Brazil’s Oil & Gas Production 2. Petrobras at a glance 3. What’s new in Brazil’s legal framework 4. Looking Forward

Overview of Brazil’s Oil & Gas Production (1/5) 7.5 million km 2 of sedimentary basins (both onshore and offshore) Rounds Pre-salt area Source: ANP

Overview of Brazil’s Oil & Gas Production (2/5) Source: ANP (National Agency of Petroleum, Natural Gas and Biofuels

Overview of Brazil’s Oil & Gas Production (3/5) Source: ANP

Overview of Brazil’s Oil & Gas Production (4/5) Source: ANP

Overview of Brazil’s Oil & Gas Production (5/5) Source: ANP

Petrobras at a glance (1/3) • Founded in 1953 • 78 thousand employees • Daily output: 2.8 million boe • 10 ethanol plants and 5 biodiesel plants • 126 vessels in operation (55 owned) • 122 production platforms (64 fixed; 58 floating) • Publicly-held company, with shares in São Paulo and New York stock exhanges (Government has a 50.3% stake in voting shares) Source: Petrobras

Petrobras at a glance (2/3)

Petrobras at a glance (3/3) Gaspetro: 49% stake to Mitsui Oil refinery in Okinawa: Taiyo Oil

What’s new in Brazil’s legal framework (1/3) Petrobras participation in the Pre-salt Petrobras would no longer have a mandatory stake in pre- salt fields. Instead, it would have the right to choose whether to act as operator and hold a minimum 30% stake in the consortia formed in the pre-salt area.

What’s new in Brazil’s legal framework (2/3) Local content requirements Decree 8.637 (2016) Program to stimulate the competitiveness of the industry suppliers. Moving from a sanction-based regime to one based on both incentives and sanctions. Incentives not only to suppliers but also to concession holders

What’s new in Brazil’s legal framework (3/3) Extension of REPETRO Special customs regime for the export and import of goods intended for research activities and exploitation of oil and gas. Established in 1999, expires in 2019. The Ministry of Mines and Energy has formally proposed its extension (Resolution 2, March 3 rd , 2016)

Looking Forward (1/3) 14 th Round – Concession of Exploratory Blocks Sectors/Basins under ANP evaluation Areas under evaluation Auction foreseen in 2017

Looking Forward (2/3) 2 nd Round – Production Sharing Contracts 4 Unitization areas in the pre-salt under evaluation Tartaruga Auction foreseen in Verde 2017 Gato do Mato Carcará (*) Sapinhoá

Looking Forward (2/3) MoC on Investment in Infrastructure Scope: (i) transportation and logistics ; (ii) information and communications technology ; and (iii) energy.

Thank you