In order to keep our clients informed about the current landscape of the main energy and natural resources sectors in Brazil, we have prepared the Energy Newsletter, a monthly bulletin with the main news of the energy market.
This information channel is the result of the collaboration between our “Oil & Gas” and “Energy” teams.
The newsletter was designed within the context of the energy transition that is being targeted in Brazil, and drafted as a complete source of information about the dynamic Brazilian energy market within the oil, natural gas, electricity and renewable energy sectors.
Enjoy reading!
This newsletter is for informative purposes only and does not constitute legal advice for any specific operation or business. For more information, please contact our team of lawyers.
Oil and Gas
ANP approves studies to include Jaspe block in future bidding rounds
On April 14, 2023, the ANP’s Collegiate Board approved the geological and economic studies related to the inclusion of the Jaspe block (Campos Basin), located in the Pre-Salt Polygon, in future bidding rounds for exploration and production areas of oil and natural gas.
After the assessment was carried out, the ANP concluded that this is an area with potential structures in Pre-Salt that, altogether, account for an in-place volume of 2.5 billion barrels of oil equivalent.
The studies will now be submitted to the Ministry of Mines and Energy for evaluation, which may propose to the Brazilian National Council for Energy Policy (CNPE) that the Jaspe block be subject to bidding rounds for exploration and production of oil and natural gas.
Click here to access the full article.
ANP publishes guidelines for Development Plans
On April 19, 2023, the ANP published guidelines for the analysis of Development Plans (“PDs”) with requests for extension of the production phase and/or reduction of the royalty rate on incremental production. Such guidelines provide for the minimum necessary content that must be submitted by companies holding oil and/or natural gas exploration contracts for the approval of PDs by the ANP. According to the Agency, the guidelines apply to both onshore and offshore fields.
Click here to access the guidelines.
ANP discusses single resolution for the bidding of exploration and production areas
On April 25, 2023, the ANP held Public Hearing No. 04/2023 for the purposes of discussing the draft resolution regarding the bidding procedures for granting exploration, rehabilitation and production activities for oil and natural gas under concession and production sharing systems.
The new Resolution seeks to unify the previous regulations into a single resolution and establish within a single standard, the procedures for the concession and production sharing systems, currently regulated by ANP Resolutions No. 18/2015 and No. 24/2013, respectively. The new draft resolution encompasses both the Open Acreage System and bidding rounds.
Workshop discusses criteria for the classification of gas transmission pipelines
On April 26, 2023, the ANP held the workshop “Regulation of item VI of Article 7 of the New Gas Law: classification of gas transmission pipelines”. This workshop sought to discuss, along with the agents that operate in the natural gas market and society, the regulation of provisions of Article 7, item VI of Law 14,134/2021. According to the item mentioned above, the ANP should establish limits of diameter, pressure and length to assist in the classification process of gas transmission pipelines.
Click here to access the recording of the workshop.
ANP approves new resolution on Local Content Certification
The ANP’s Collegiate Board approved, on April 27, 2023, a draft resolution that amends ANP Resolution No. 19/2013, with regard to the criteria and procedures for the execution of activities within the scope of Local Content Certification.
Certification, which is regulated by ANP Resolution No. 19/2013, is carried out by institutions accredited by the ANP (the certification bodies), and entails assessing the percentage of local content in a given supply of goods or services, as well as certifying it publicly.
The ANP identified opportunities for improvement to the provisions in the regulation regarding the “Total Amount of the Complete System” definition for international systems without a trading transaction tax document. According to the ANP, the goal is to ensure the application of the calculation method of local content deduction to foreign supplies that contain incorporated domestic components.
The changes to ANP Resolution No. 19/2013 also include a provision for using the Import Declaration (“DI”) aimed at outlining the amount of the international system without a tax document, limited to a floor related to the amount of the sum of costs making up the system, as well as a ceiling of 10% greater than this sum. Additionally, a time frame was defined for the completion of the accounting of system costs and for compliance with the requirements for weight distribution of such certified system costs in the corresponding reporting entries regarding local content.
Click here to access the full article.
Open Acreage Offering (“OPC”): ANP approves inclusion of areas in public notice and of new block in study phase
On April 27, 2023, the ANP board approved the amendment to the Open Acreage Offering (“OPC”) public notice in order to include three new areas. The inclusion of Block S-M-1259 in the study phase for inclusion in the OPC, was also approved.
The inclusion of onshore exploratory blocks PRC-T-54 and ES-T-399 – in the Parecis and Espírito Santo basins, respectively, as well as in Japiim (area with marginal accumulations), in the Amazonas Basin – was subject to a public hearing held last March 14, 2023, according to the OPC notice. The new version of the notice was forwarded for evaluation by the board and approved on April 27, 2023. After the hearing, the consolidation of contributions was received, along with the combined analysis by the technical area and the Public Prosecutors’ Office together with the ANP. The ANP’s board also approved the future inclusion of Block S-M-1259, in the Santos Basin, referring to the OPC.
NEWS
Production in Pre-Salt sets new record and corresponds to 78.1% of domestic overall output in February
As informed by the ANP on April 05, 2023, production in the Pre-Salt in February reached as much as 3.268 million barrels of oil equivalent per day (boe/d), and corresponded to 78.1% of the overall Brazilian output, the highest participation percentage ever recorded. According to the ANP, 2.566 million barrels per day (bbl/d) of oil and 111.55 million cubic meters per day (m³/d) of natural gas were produced by 136 wells.
An increase of 3.2% was recorded, as compared to the previous month, and of 15%, compared to the same month last year. Additionally, it was the highest production ever recorded in the pre-salt environment, exceeding that of October 2022, when 3.142 million boe/d were produced.
In February, national production was recorded at 4.183 boe/d, of which 3.262 million bbl/d and 146.540 million m³/d. As reported by the ANP, it was the highest production ever recorded in this context, exceeding that of October 2022, when 4.180 million boe/d were produced.
As for oil, there was a reduction of 0.4%, in comparison with the previous month, and an increase of 11.8%, in comparison with February 2022. For natural gas, production grew 2.3% compared to January 2023, and 10%, compared to the same month in the previous year.
Click here to access the full article.
ANP launches dynamic dashboard for monitoring authorization and update processes aimed at fuel and LPG retailers
On April 19, 2023, the ANP launched the Dynamic Dashboard for Monitoring the Registration Process of Fuels and LPG retailers. Through the new tool, it is possible to check the progress of the ANP in relation to the authorization and updating processes of automotive fuel retailers (gas stations) and LPG (cooking gas). A map is also available on the dashboard to display the number of fuel and LPG retailers by state and municipality.
Power +
Normative Resolution changes the organizational structure of ANEEL
On April 24, 2023, the National Electric Energy Agency (“ANEEL”) published Normative Resolution No. 1,061/2023 (“REN 1,061/2023”), to modify its organizational structure, the regulatory powers of the areas, and the distribution of the positions of the agency’s committee.
With the restructuring, 10 organizational units were canceled, to be arranged into new structures. The organizational units Secretariat of Innovation and Energy Transition, and the Secretariat of Auctions and Internal Affairs were created, as well as an exclusive organizational unit for the Ombudsman. In addition, the restructuring consolidated certain Superintendencies of ANEEL.
NEWS
Public Consultation on the revision of RAG and X Factor of hydroelectric plants opened
On April 25, 2023, ANEEL approved the opening of Public Consultation No. 013 (“CP No. 013/2023”) on the Periodic Review of the Annual Generation Revenue (“RAG”) and X Factor of the hydroelectric plants under the regime of physical and potential guarantee quotas, under Law No. 12,783/2013. RAG is the financial contribution paid to the hydroelectric plants operating under the quota regime due to the availability of the physical and potential energy guarantee portion for the National Interconnected System (“SIN”) through contracts signed with energy distributors.
The revision of contracts of the generation concessionaires that have been extended is carried out every five years, with the last revision of RAG having occurred in 2018.
Interested parties can submit their contributions until June 05, 2023.
See Public Consultation in full
Second phase of Public Consultation on access to the transmission for cases of generator expansion opened
On April 25, 2023, ANEEL approved the opening of the second phase of Public Consultation No. 52 (“CP 52/2022”), for contributions to the Regulatory Impact Analysis (“AIR”) that deals with access to transmission in cases of expansion of wind and photovoltaic generators.
The AIR faces a situation of incompatibility with the regulatory apparatus of access to transmission, in situations of expansion of wind and photovoltaic generators. As such, the following objectives are proposed: (i) to provide conditions for efficient use of the network and adequate allocation of costs; (ii) to simplify the access process for generators; (iii) to define objective criteria to determine the viability of access; and (iv) to clarify the risk matrix of generators for access.
Interested parties can submit contributions until June 27, 2023, by document exchange.
Renewables
HIGHLIGHTS
China Energy commits to investing USD 10 billion in renewable energy in Brazil
In a meeting held on April 27, 2023, Minister Alexandre Silveira (Ministry of Mines and Energy – MME), met with the chief executive officer of Chinese state-owned energy company China Energy, for the execution of an agreement that provides for an investment of USD 10 billion in both the renewable energy sector and in the production of Brazilian hydrogen within the next few years.
The minister shed light on how partnerships seek to help Brazil towards domestic energy transition. He also emphasized that the work carried out is aimed at strengthening both the regulatory framework and legal certainty, in order to boost the investment attractiveness of the Brazilian landscape.
The cooperation agreement between China and Brazil will also aim towards research and innovation. Additionally, in April 2023, a memorandum of understanding was executed between the Ministry of Science, Technology and Innovation (“MCTI”) of Brazil and the Chinese government, seeking to stimulate new partnerships between both countries regarding scientific and technological development in 16 areas, which include clean energy, biotechnology, climate change, among others.
Click here to access the full article.
Environment Committee holds public hearing on renewable energy
On March 30, 2023, the Brazilian Senate’s Environment Committee (“CMA”) held a public hearing to discuss the conclusions of the work carried out by the Energy Working Group (“GT”) that integrates the Ecological Generation Forum, as well as the related bills (“PLs”) submitted by the CMA.
PLs 1878/2022, 1879/2022 and 1880/2022 provide for: i) the creation of a policy to regulate the production and uses of green hydrogen for energy purposes; ii) the creation of a policy for the production and use of biogas and biomethane; and iii) the creation of an incentive program for the scale production of fuel cells, taking advantage of the potential of the hydrogen, ethanol and biogas value chains, respectively.
Click here to access the recording of the public hearing.
Brazil registers new record for energy generated from renewable sources
As disclosed by the National Electric System Operator (“ONS”), the data collected at the end of the first quarter of 2023 point to an intense use of energy from clean sources in Brazil. Water, wind and solar energy accounted for more than 90% of the overall electricity used by the population throughout this period– a record that has not been reached since 2011. The ONS attributes this positive result to proper resource utilization, as well as to the increase in the number of power plants in Brazil.
Click here to access the full article.
Resolution that created the Steering Committee of the National Hydrogen Program amended
On April 06, 2023, the Ministry of Mines and Energy (“MME”) published Resolution No. 04 of 2023, amending Resolution CNPE No. 06, which created the Steering Committee of the National Hydrogen Program (“COGES-PHN2”). The amendment modifies the composition of the COGES-PHN2, to adapt the denomination of the ministries that make up the council.
Chamber approves urgency for a bill that seeks to repeal ANEEL’s standards on distributed generation
On April 11, 2023, the House of Representatives approved the requirement of urgency of Draft Legislative Decree No. 65 of 2023 (“PDL 65/2023”), authored by Congressman Beto Pereira, a member of the party PSDB-MS. This Bill aims to partially suspend the effects of ANEEL’s REN 1,000/2021, as well as REN 1,059/2023, also from the regulatory agency, which regulates Law 14,300/2022. The reasons for the suspensions relate to alleged losses to consumers and barriers in the generation of energy.
NEWS
ANP publishes goals related to RenovaBio for distributors
On April 03, 2023, the ANP published ANP Order No. 322, dated March 31, 2023, addressing the goals related to Decarbonization Credits (“CBIOs”), which will be mandatory for certain fuel distributors.
The goals will remain in force until December 31, 2023, and were calculated based on the market share of each fossil fuel distributor, taking into account the mandatory annual goal of 37.47 million CBIOs.
Click here to access ANP Order of March 31, 2023.
Northeast Region bets on tax reform to attract investments in renewable energy sources
During the Annual General Meeting of the Interstate Consortium for Sustainable Development of the Northeast (“Northeast Consortium”), held on April 28, 2023, the governor of Ceará (Elmano de Freitas) stated that the discussion on a possible tax reform is of paramount importance in relation to investments in renewable energy in the region.
According to the governor, the current landscape of this industry in the Northeast calls for some kind of “special approach” to attract investments in view of the imminence of the green reindustrialization movement in Brazil.
In addition to this statement, the Northeast Consortium addressed the organization agendas of the federal government’s Multi-Year Plan (PPA) hearings; discussion of Bill 365/2022, which deals with renewable energy; creation of the Northeast Investment Fund; and the reorganization of the National Council of State Secretaries of Administration (Consad) and the Thematic Chambers. Also, in the meeting under discussion, a cooperation agreement was executed between the Northeast Consortium and the United Nations Development Program (UNDP).
Click here to access the full article.
Australia closes country’s oldest coal-fired power plant
On April 28, activities were shut down at the oldest coal-fired power plant in Australia. Built in 1971, the power plant supplied 10% of the power used in Australia’s most populous state.
After the decommissioning process of the central plant structures, which will take about two years, AGL (owner of the power plant) has plans to develop clean energy projects at the site, and is studying the implementation of a hydrogen plant.
Australia, a historically large producer and exporter of coal, gets most of its energy from this energy matrix. Public opinion, however, has been acting forcefully in order to change this landscape. In 2022, the elected party promised to generate 82% of its electricity through renewable energy sources by 2030, and several fossil fuel companies have chosen to shut down their activities.
This big Australian step towards a green footprint path has been taken, but major challenges are still expected due to several government projects that require the use of gas, coal and oil.
Click here to access the full article.
OPPORTUNITIES
PETROBRAS CONTRACTING
| DESCRIPTION | CONTRIBUTION PERIOD | CODE / NOTES |
| Chartering and operation services of FPSO Type Floating Production Unit, and Maritime Hospitality Services, as specified in this document and its amendments. | July 03, 2023 | 12h00 | Petronect Code No. 7003888184 |
| FPSO for SEAP-II – Chartering and operation services. | October 30, 2023 | 12h00 | Petronect Code 7004032955 |
| FPSO for SEAP- I – Chartering and operation services. | October 30, 2023 | 12h00 | Petronect Code 7004032918 |
| Chartering of an accommodation vessel, and maritime hospitality services. | May 23, 2023 | 17h00 | Petronect Code 7004055542 |
| Chartering of a WSSV vessel; specialized technical services of chemical, stimulation and related treatments, in oil wells, gas, lines and pipelines, among others; as well as supply of chemical products. | June 06, 2023 | 17h00 | Petronect Code 7004053453 |
| Satellite connectivity service with terminal supply – Starlink. | May 31, 2023 | 12h00 | Petronect Code 7004030313
|
| Services for defect corrections in the atmospheric discharge protection systems in the telecommunications tower of the Campos Elíseos TECAM terminal. | May 23, 2023 | 17h00 | Petronect Code 7004055181 |
| Technical services for the design and adaptation of facilities for segregation of clear products at the São Sebastião Terminal (TA-SSE). | May 25, 2023 | 12h00 | Petronect Code 7004033994 |
|
(i) supply of up to 103.8 km of flexible ducts of riser and flowline types for Gas Lift (GL), Water Injection (IA), and Production (PO), with accessories; (ii) term of area sharing for the storage of coils and materials; (iii) service logistics and transport of coils and materials; (iv) coil rental; and (v) technical assistance, supervision and assembly services to be contracted by Petrobras, through a bidding procedure, in accordance with Law No. 13.303/2016, in attendance of the complementary and maintenance projects in the Marlim Leste, Marlim Sul and Jubarte fields, as well as the revitalization project of the gas flow network of the Campos Basin fields. |
August 12, 2023 | 17h00 | Petronect Code 7004034107 |
PUBLIC CONSULTATIONS AND HEARINGS (ANP)
| DESCRIPTION | CONTRIBUTION PERIOD | CODE / NOTES |
| Obtain contributions and additional information on the draft resolution that provides for the operational safety regime for oil and natural gas E&P facilities, and approve the technical regulation for the operational safety management system (SGSO). | May 16, 2023
(Public Hearing Date) |
No. 28/2022 |
| Obtain contributions on the draft resolution that will regulate authorizations for the activity of packaging and logistics operations for the movement of liquefied natural gas (LNG), in bulk, through alternative means to the pipeline. | May 30, 2023
(Public Hearing Date) |
No. 1/2023
|
| Proposal for a revision of ANP Resolution No. 874, of April 18, 2022, which establishes the criteria to set the Oil Reference Price, adopted in the calculation of government shareholdings. |
June 09, 2023 (Public Hearing Date) |
No. 24/2022 |
PUBLIC CONSULTATIONS (ANEEL)
| CODE | DESCRIPTION | CONTRIBUTION PERIOD |
| CP nº 013/2023 | Obter subsídios para a revisão da Receita Anual de Geração – RAG e do Fator X das usinas hidrelétricas enquadradas no regime de cotas de garantia física e de potência, nos termos da Lei nº 12.783/2013. | 05/06/2023 |
| CP nº 012/2023 | Obter subsídios para aprimorar a elaboração do Plano Estratégico Quinquenal de Inovação – PEQuI 2023-2028 do Programa de Pesquisa, Desenvolvimento e Inovação – PDI ANEEL. | 22/05/2023 |
**Please note that the deadlines in the table above are constantly changing, so they correspond to deadlines disclosed at the time of publication of this newsletter.
 |
June 30, 2023 – ANEEL Transmission Auction
To be held by ANEEL. |
 |
July/2023 – Auction for Contracting Reserve Capacity
To be held by ANEEL. |
 |
August 2023 – New Energy Auctions “A-4” and “A-6”
To be held by ANEEL. |
 |
October, 2023 – Auction for Supply of Isolated Systems
To be held by ANEEL. |
 |
November/2023 – Auction for Contracting Reserve Capacity
To be held by ANEEL. |
| |
December, 2023 – Existing Energy Auctions A-1 and A-2″
To be held by ANEEL. |
| |
July/2024 – Auction for Contracting Reserve Capacity
To be held by ANEEL. |
| |
August 2024 – New Existing Energy Auctions “A-4” and “A-6”
To be held by ANEEL. |
| |
October/2024 – Auction for Supply of Isolated Systems
To be held by ANEEL. |
| |
November/2024 – Auction for Contracting Reserve Capacity
To be held by ANEEL. |
| |
December/2024 – New Energy Auctions “A-1” and “A-2″
To be held by ANEEL. |
| |
July, 2025 – Auction for Contracting Reserve Capacity
To be held by ANEEL. |
| |
August 2025 – New Existing Energy Auctions “A-4” and “A-6”
To be held by ANEEL. |
| |
October/2025 – Auction for Supply of Isolated Systems
To be held by ANEEL. |
| |
November, 2025 – Auction for Contracting Reserve Capacity
To be held by ANEEL. |
|
December/2025 – New Energy Auctions “A-1” and “A-2″
To be held by ANEEL. |
Related Partners
Related Lawyers
Arthur Azerêdo Alencar Feitosa
Bianca Reis
João Raphael Oliveira Aranha
Laura Isabelle Guzzo
Lívia Sousa Borges Leal
Luis Eduardo Ribeiro
Roberta Coelho de Souza Batalha
Thais Araujo Rato Tarelho
Related Areas
Share
Newsletters
