Concession of Exploratory Blocks
In the concession regime, the concessionary company assumes the risk of investing and finding – or not – oil or natural gas. The company will have the property of the oil and gas discovery in the conceded area. Through this model of contract, the company pays the government takes, such as the signature bonus, payment for the occupation or retention of the area (in the case of onshore blocks), royalties and, in the case of fields the produces large volumes, a special participation. The contracts are signed by the ANP on behalf of the Federal Union.
In these bidding rounds, the interested companies offer, individually or in a consortium, an amount for the bonus signature and propose a minimum exploratory program (PEM), that is, the activities, such as the seismic and well drilling that the company commits itself to carry out in that area. The company or consortium that presents the most advantageous bid, according to the norms established in the tender protocol, receives the right to explore that area to verify the existence of oil and/or natural gas deposits