Canada or the USA: Where Are the Jobs?

 MME also hired Expetro84 to create a basic draft of the Brazilian concession contract. This first draft would be signed by Petrobras and the ANP to formalize the areas that Petrobras would retain following the end of the monopoly. According to Simões Filho (2020), the MME hired UFBA and UNICAMP to analyze Petrobras' request to retain areas for E&P activities. UFBA examined the areas under exploration, while UNICAMP investigated the areas under development and production. 

The few exceptions that were disapproved were related to areas under investigation.


According to Prates (2020), the E&P contracts where Braspetro (Petrobras' international subsidiary company) had performed operations were used as references in the preparation of this first draft, which was primarily conducted by retired Petrobras technicians José Carlos Trinta Allen and Sandoval Amui. This first draft was dubbed a Round Zero concession contract and regulated.  The criterion for defining the ITP Original Volume of Equivalent Oil, an industry practice, is explicitly mentioned in the ANP Resolution for Unitization, which will be adopted preferentially in the UA negotiations signed in Brazil. Furthermore, during the preparation of the initial version of this Resolution, the Brazilian Institute of Petroleum, Natural Gas, and Biofuels (IBP) and companies involved in unitization processes submitted recommendations for the public consultation process. These recommendations reflected industry practices and international regulations. However, ANP drafted the rules for processes involving open areas despite lacking practical experience. The adoption of the ANP Unitization Resolution rules for open areas processes highlighted the need to change some of its provisions, as David and others (2014) pointed out, and to fill some gaps for this type of unitization. 

As a result, the CNPE Unitization Resolution was published, outlining some guidelines for open areas.


According to Braga and David (2018), the rulemaking process for the CNPE Unitization Resolution involved a heated debate with the industry, which was represented by the IBP and the companies negotiating the UAs involving open areas. In order to contribute to the rulemaking process, these actors presented industry practices and international regulations to the working group established to prepare the CNPE Unitization Resolution82. The ANP Unitization Resolution amendment incorporated the provisions outlined in the CNPE Unitization Resolution. This review took into account suggestions from the IBP and companies involved in unitization processes, particularly those involving open areas. IBP stated in its presentation during the public hearing that it was based on best practices in the petroleum industry, as evidenced by the transcript: "IBP's proposals for improving Resolution ANP 25/2013 are based on best practices of the petroleum industry83" (IBP, 2017). The Brazilian Development Bank (BNDES) also prepared studies to aid in the rulemaking process for the Pre-salt Law. The first was released in December 2008, under the title "Estudos sobre o Pré-sal"79. It examined the international experiences of HCs in the Middle East and North Africa (MENA), Norway, the United States (Alaska), and Canada (Alberta), focusing on revenue management from petroleum exploitation. In June 2009, BNDES published a study titled "Estudos de alternativas regulatórias, institucionais e financeiras para an exploração e produção de petróleo e gás natural e para o desenvolvimento industrial da cadeia produtiva de petróleo e gás natural no Brasil".80 This study provided a brief presentation on the various rules that comprise E&P.

Regulations, including the unitization issue. The regulations of the following HCs were examined.


The analysis of these clauses reveals that the Pre-salt Law's unitization rules are similar to those of Norway and Indonesia in some respects. In Norway, the similarities include the requirement for the submission of the UA, the need for UA approval by the regulatory agency, and the regulatory agency's definition of the parties' rights and obligations in the absence of an agreement. Brazilian regulation is similar to that of Indonesia in that companies must notify the regulatory agency after verifying the existence of a shared deposit. The initial version of ANP Resolution No. 25/2013 was drafted using some transnational rules. ANP Technical Report n. 116/2012 (ANP, 2012), which describes the ANP Unitization Resolution rulemaking process, makes reference to the UA model contract from AIPN of 2006, the UK regulation on trans-boundary unitization, and the doctrine of HCs with more experience in this subject, in this case the US and the UK. This statement can be seen in the excerpt of the cited report below: These requests were accompanied by a portfolio containing pertinent information for each area (reserves, well profile, PD summaries, and exploratory programs). Almost all of Petrobras' requests have been granted. 

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