Brazil’s National Agency of Petroleum Publishes Resolution Updating Deadlines and Procedures due to COVID-19

On May 6, 2021, Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (“ANP”) published ANP Resolution No. 841/2021 ("Resolution"), amending ANP Resolution No. 836/2020 regarding the deadlines and procedures during the COVID-19 public health emergency for the ANP-regulated entities that work in the exploration and production of oil and natural gas.

The Resolution extends to September 30, 2021, (i) the deadline for petroleum companies to make research, development and innovation (RD&I) investments necessary to fulfill the obligations they committed to in the reference year of 2020 and (ii) the application of the Balance of Unapplied Resources (SRN) assessed on September 30, 2020. The deadline for submitting the Annual Consolidated Report (RCA) related to the reference year of 2020 was also extended, to December 30, 2021.

In addition, the Resolution suspends the deadlines for the following operational procedures, including in relation to oil and natural gas transportation and transfer activities: (i) collection of oil and natural gas samples at points of tax measurement and appropriation and transfer of custody for carrying out physical-chemical analyses; (ii) calibration of secondary elements for measuring temperature and pressure, including measuring tapes and thermometers associated with tanks; (iii) calibration of primary elements of oil and natural gas measurement systems; (iv) inspection of the components of the oil and natural gas measurement systems; (v) verification of flare gas flow meters (calibration or equivalent checks of ultrasonic type natural gas flow meters for burning or ventilation); and (vi) tests of wells located exclusively on onshore fields.

The Resolution suspends the requirement that ANP inspect facilities prior to authorizing the operation of measurement points. Evidence of applicable technical and legal requirements may be requested to enable the analysis without the need for on-site inspection. If the analysis of the technical and legal requirements requires on-site inspection of the measurement systems, ANP may condition its authorization on the prior inspection of the facility.

Furthermore, the deadline for submitting the compositional analysis of natural gas for assessing the reference price (“PRGN”) has been suspended. The PRGN calculation will be carried out based on the last compositional analysis.

For more information in relation to this Legal Update, please contact EnergypartnersTC@mayerbrown.com.