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Trading and distribution
Regulation How are oil and gas resources traded in your jurisdiction and what (if any) regulations and procedures apply to oil and gas sales, distribution and marketing activities, both nationally and internationally?
Under the Federal Constitution, federal states must grant concessions for the distribution of piped gas for supplying final consumers. Further, Law 9.478/1997 (the Petroleum Law) provides that federal states can explore the distribution directly, instead of entering into a concession agreement with a private entity.
As a result, the regulation of such activity is the role of each federal state and their regulatory agencies. Although some states have organised their own regulatory system for gas distribution, others have not.
Oil and its by-products According to National Agency of Petroleum, Natural Gas and Biofuels (ANP) Ordinance 16/2010, any company incorporated in Brazil, whose headquarters and management are located in Brazil, may be eligible to operate or build refineries.
Further, the distribution and resale of by-products may also be authorised by the ANP, on compliance with several applicable rules.
Exports In Brazil, oil and gas output is freely exportable as it is not subject to limits or quotas.
Both the Petroleum Law and Law 11.909/2009 (the Gas Law) provide that any company or consortium of companies incorporated under Brazilian law, whose headquarters and management are located in Brazil, can obtain authorisation to import and export oil and natural gas. ANP Rule 07/1999 sets out the requirements for such authorisation to be granted, including the documents and information that the exporter must submit.
Is oil and gas pricing regulated in your jurisdiction?
Oil and gas prices are not fixed by the government. Rather, they are freely negotiated and stipulated by the parties, based on market practice.
However, the ANP can establish a minimum price for oil and gas, as well as for cost oil in the production sharing regime.
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