On July 5, 2017, the National Agency of Petroleum, Natural Gas and Biofuels ("ANP"), published the tender protocol drafts for the 2nd and 3rd Bid Rounds for exploratory blocks under the production sharing regime, with the objective of establishing the procedures and rules for participating in the bids, as well as making available the production sharing contract drafts, the preliminary schedules, and the information regarding the offered areas.

The 2nd Pre-Salt Round will offer non-contracted unitization areas ("open acreage") adjacent to the prospects of Carcará (block BM-S-8) and Gato do Mato (block BM-S-54) and to the fields of Sapinhoá, in Santos Basin, and Tartaruga Verde (shared deposit of Tartaruga Mestiça), in Campos Basin.

As to the 3rd Pre-Salt Round, ANP will offer four areas: (i) Pau Brasil; (ii) Peroba e (iii) Alto de Cabo Frio - Oeste, in Santos Basin; and (iv) Alto de Cabo Frio - Central, in Santos and Campos Basins.

The schedules for both bids are similar and mention that the technical data packages are already available. For those who are interested in accessing, it is required to: (i) fill out an electronic registration form; (ii) present proof of payment of the participation fee, in accordance with the specific area; and (iii) submit the term of confidentiality provided in the tender protocol drafts, the corporate documentation, and power-of-attorney granted to the accredited representative before ANP. Below you will find the schedule.

Event

Date

Publication of tender protocol drafts and production sharing contract drafts

07/05/2017

Commencement of period for filling application forms, delivery of qualification documentation and payment fee participation

07/06/2017

Technical data package availability

07/06/2017

Final deadline for additions into the tender protocol drafts and into the production sharing contract drafts, and public consultation closing

07/21/2017

Public hearing (city of Rio de Janeiro)

07/25/2017

Technical seminar

08/17/2017

Publication of tender protocols and the templates of the productions sharing contracts

08/23/2017

Environmental and fiscal-legal seminars

08/24/2017

Final deadline for filling application forms, delivery of qualification documentation and payment of participation fee

09/08/2017

Deadline to present the bid offer guarantees

10/11/2017

Public offers presentation

10/27/2017

Award and ratification of the bidding

until 11/09/2017

Deadline to present the following documents: (i) execution of the production sharing contract; and (ii) qualification of the affiliated indicated for the execution of the contract, if be such is the case

by 12/11/2017

Deadline for payment of the signature bonus, and demonstration of proof of payment

by 12/11/2017

Production sharing contract execution

until 12/29/2017

The tender protocol drafts are available at ANP's webpage (in Portuguese only). All documents will be under public consultation until July 21, 2017, so that contributions may be made, from both the industry and society in general.

We will continue to monitor the development of the Pre-salt Bid Rounds, and will keep you posted through our legal updates.