3rd October 2017
On 27 September 2017 two vital bids processes for the Brazilian Energy matrix were held: A bid for the granting of hydroelectric power plants, as well as the 14th Brazil Round for the prospecting and exploration of oil fields. MSI's Brazil law member Vieira Coelho Advogados provide a brief summary of both two bids.
Hydroelectric Power Plants Bid Process
The Federal Government promoted a bid process for the granting of four hydroelectric power plants that had their concession contracts end between 2013 and 2017, that were not renewed by Brazilian governmental company Companhia Energética de Minas Gerais S/A (Cemig). This represents another relevant stage in the restart of investments in the Brazilian electric sector.
The winners of the bid may explore the activities for the next 30 years. The Brazilian Government expected to receive at least R$ 11 billion with the bid for these power plants; however, due to interest from multiple parties, this amount reached R$ 12.2 billion.
These concessions were included in the Investment Partnerships Program (Programa de Parcerias de Investimentos – PPI), under the terms of Decree # 8,893, of November 1, 2016.
14th Brazil Round
The Brazilian Oil, Natural Gas & Biofuels Agency – ANP held the 14th Bid Round of exploration and production blocks.
In this bid round a total of 287 blocks were offered, spread across 9 sedimentary basins. Although the 14th Brazil round was expected to attract small and medium sized O&G companies, several of the blocks were granted to large O&G companies.
A total of 20 companies presented bids, with 17 of them having been granted at least one block. A total of 37 blocks were granted, with a total estimated Minimum Exploratory Program – PEM of R$ 845 million. The concession contracts are expected to be signed on January 31, 2018.
Read the full article here
Vieira Coelho Advogados is a multidisciplinary legal practice dedicated to business law, with a high expertise in both advisory and litigation issues.
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