Brazil: Petrobras expresses interest to exercise the pre-emption right on the Transfer of Rights surplus bidding round
22 May 2019
Petrobras has expressed interest to the National Council for Energy Policy (CNPE) to exercise the pre-emption rights on the Transfer of Rights surplus bidding round under the production sharing regime, pursuant to Brazilian Law 12.351/2010 and Federal Decree 9.041/2017.
The Executive Board approved the pre-emption right exercise in the areas Búzios and Itapu under development, with a 30% participating interest, considering the parameters disclosed in CNPE Resolution No. 08 of May 9, 2019, and in the Ministry of Mines and Energy (MME) Ordinance No. 213 of April 23, 2019.
Petrobras may also increase its minimum interest of 30%, on the date of the auction, in the areas in which it exercised its pre-emption right.
In relation to the areas in which Petrobras has not exercised its pre-emption right, the company may participate on an equal basis with other bidders, whether acting as operator or non-operator.
The amount corresponding to the signature bonus to be paid is R$ 20,988 million, considering the confirmation of the participating interest indicated above.
In line with the determination of the Board of Directors, at a meeting held yesterday, Petrobras reiterates that the execution of the amendment to the Transfer of Rights Agreement must occur before the excess volumes auction and subject to conditions already disclosed to the market today regarding this matter.