Published in 28/04/2022

The Ministry of Mines and Energy (MME) held last Wednesday (April 27th) in Brasília (Federal District), a ceremony to execute the production sharing agreements of the surplus of onerous assignment from the fields of Sépia and Atapu, located in the Santos Basin, Pre-salt.

Ministry of Mines and Energy, Bento Albuquerque, highlighted that "the auction was structured to focus on the predictability and competitiveness, best practices of transparency, traceability and legal safety in light of the current scenario of the worldwide oil industry".

The block of Atapu was won by the consortium formed by Petrobras (operator) with 52.5%; to Shell Brasil, with 25%; and to TotalEnergies EP, with 22.5%. Amount of the subscription bonus was of BRL 4 billion and the percentage of oil surplus offered to the Federal Government was of 31.68%.

The block of Sépia was hired by the consortium formed by Petrobras (operator) with 30%; to TotalEnergies EP, with 28%; to Petronas, with 21%; and QP Brasil, with 21%. The collection in subscription bonus was of BRL 7.1 billion and the percentage of surplus oil for the Federal Government was of 37.43%

"This is a very special day for the Ministry of Mines and Energy as it is the result of hard work and perseverance of several institutions that are here today. The Federal Government will keep on formulating policies that promote safety and attractiveness to the business environment of the local energy market. We are committed to transform, in a sustainable manner, our most abundant natural resources with the purpose of developing Brazil and the wellbeing of our society", stated Bento Albuquerque.

The auction was held in December 2021 successfully and the two fields auctioned ensured:

- Total subscription bonus of BRL 11.1 billion, from which BRL 7.7 billion were destined to states and cities;

- Surplus oil from Atapu achieved a premium of 437% and Sépia achieved 149%;

- Total expected investments is of nearly BRL 204 billion; and

- Expected collection of governmental participations is of BRL 302 billion over 35 years of contracts.

The managing director of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), Rodolfo Saboia, recalled that the development of the Pre-Salt is vital for Brazil, as it represents the energy safety of the country. "The contracted areas are exceptional. Together, Atapu and Sépia are already producing more than 220,000 barrels of oil equivalent per day", he said.

The CEO of Pré-Sal Petróleo (PPSA), Eduardo Gerk, attended the ceremony and execution of the agreements. With Sépia and Atapu, PPSA now manages 29 agreements.

Understanding the participation of PPSA in the auction of Sépia and Atapu:

November 2019

ANP offers fields of Sépia and Atapu in auction, but areas were not acquired. Among the reasons were the uncertainties at the time concerning the amount of the compensation and the percentage of participations.

December 2019

Ministry of Mines and Energy (MME) deploys two actions on the subject to be carried out by PPSA: definition of reciprocal participations for the onerous assignment agreement and the future production sharing agreement and assessment and negotiation with Petrobras when calculating the amount of compensation before disclosure of pre-call of a new auction.

February 2020

PPSA starts technical assessment works of the deposits of Sépia and Atapu.

September 2020

PPSA has submitted to ANP and to Petrobras its technical report, with the definition of reciprocal participation in the onerous assignment agreement and in the future production sharing agreement.

February 2021

ANP approves participations, defined by PPSA and Petrobras, establishing a percentage of 60.5% and 68.7% for participation under production sharing of Atapu and Sépia, respectively.

April 2021

MME Ordinance determines that Petrobras and PPSA must sign an agreement to be submitted to and approved by MME, about the definition of parameters and amount of the compensation to be paid to Petrobras.

December 2021

Agreement is executed by and between PPSA and Petrobras based on guidelines created by a Proposal Committee following submission and approval by the MME of the parameters agreed along with the calculated amount of the compensation to be paid to the assignee by future contractors under production sharing regime in the sum of USD 6.45 billion for both fields.

December 2021

Holding of the Second Round of Surplus Volumes pertaining to Onerous Assignment. Blocks of Sépia and Atapu were auctioned with surplus oil percentages for the Federal Government of 37.43% and 31.68%, respectively, corresponding to premiums of 149.20% and 437.86%.

April 2022

The production sharing agreements of the surplus volumes of onerous assignment in the fields of Sépia and Atapu are executed. Production of fields begins under co-participation. PPSA manages agreements.