CNPE publishes resolution authorizing the extension of E&P contracts
On September 14th, 2020, the National Council of Energy Policy (CNPE) published Resolution nº 06/2020, which authorizes the National Agency of Petroleum, Natural Gas and Biofuels (ANP) to extend the term of concession contracts, signed as from the 1st Bidding Round, held in 1999.
Please find below the main guidelines set forth by the resolution:
- The extension shall apply only for fields whose production term extension proves viable beyond the original contractual term;
- Concessionaires interested in the extension shall submit the new Development Plan to the ANP for approval, indicating the investments to be made;
- The extension period shall be compatible with the production expectations resulting from the new Development Plan and the new investments, limited to 27 (twenty seven) years; and
- The request for extension shall be granted by ANP after assessment of the economic benefit of the extension to the Federal Government.
The Resolution also stipulates that, once the extension is approved, the non-fulfillment of the new Development Plan may result in the termination of the agreement.
The Oil, Gas & Offshore team is available in case of doubts.