On November 9, 2017, during the 2nd extraordinary meeting held in 2017, the National Energy Policy Council ("CNPE") approved the 4th Pre-Salt Bid Round under the Production Sharing Regime (“4th Pre-Salt Bid Round”) and the 15th Bid Round under the Concession Regime (“15th Concession Bid Round”), which are expected to occur on June 7 and March 29, 2018, respectively.

Under the 4th Pre-Salt Bid Round, five (5) blocks located in the Santos and Campos basins will be offered: Três Marias; Dois Irmãos; Uirapuru; Saturno; and Itaimbezinho.

As previously mentioned in our legal update regarding the regulation of Petrobras’ preferential right, counted from the issuance of the CNPE resolution that will contain the technical and economic parameters (including the Federal Government’s minimum profit oil, as well as the signing bonus for each area) of the blocks to be contracted under the production sharing regime, Petrobras will have a thirty (30) day period to express its interest in participating as Operator, indicating the blocks of interest and the intended participating interest, which cannot be lower than thirty percent (30%).

Regarding the 15th Concession Bid Round, seventy (70) blocks will be offered: forty-nine (49) in the offshore basins of Ceará, Potiguar, Sergipe-Alagoas, Campos and Santos, including two (2) adjacent blocks to Saturno; and (ii) twenty-one (21) in the onshore basins of Paraná and Parnaíba.

For the onshore blocks, the minimum global commitment percentage required will be fifty percent (50%), both for the exploration phase and for the development period. With regard to the offshore blocks, the minimum local content percentage required shall be: (i) exploration phase – minimum global commitment of eighteen percent (18%); and (ii) development period – twenty five percent (25%) for the well construction, forty percent (40%) for the collection and offloading system, and twenty five percent (25%) for the stationary production unit.