Oil regulation—Brazil—Q&A guide

The following Energy practice note provides comprehensive and up to date legal information covering:

  • Oil regulation—Brazil—Q&A guide
  • 1. Describe, in general terms, the key commercial aspects of the oil sector in your country.
  • 2. What percentage of your country’s energy needs is covered, directly or indirectly, by oil or gas as opposed to nuclear or non-conventional sources? What percentage of the petroleum product needs of your country is supplied with domestic production?
  • 3. Does your country have an overarching policy regarding oil-related activities or a general energy policy?
  • 4. Is there an official, publicly available register for licences and licensees? Is there a register setting out oilfield ownership or operatorship, etc?
  • 5. Describe the general legal system in your country.
  • 6. Describe the key laws and regulations that make up the principal legal framework regulating oil and gas activities.
  • 7. Are there any legislative provisions that allow for expropriation of a licensee’s interest and, if so, under what conditions?
  • 8. May the government revoke or amend a licensee’s interest?
  • 9. Identify and describe the government regulatory and oversight bodies principally responsible for regulating oil exploration and production activities in your country. What sanctions for breach may be imposed by the regulatory and oversight bodies?
  • More...

Oil regulation—Brazil—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to oil regulation in Brazil published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Campos Mello Advogados—David Meiler; Barbara Bittencourt; Nathália de Oliveira Souza; Brenda Falcão de Araújo

1. Describe, in general terms, the key commercial aspects of the oil sector in your country.

Brazil has come a long way since its first steps in 1997 to regulate the oil and gas sector and, nowadays, it is known as one of the major global players with reserves that amount to 11.89 billion barrels of 1P (proven) oil reserves, 17.496 billion barrels of 2P (proven and probable) oil reserves and 20.273 billion barrels of 3P (proven, probable and possible) oil reserves; as well as 337,238 billion cubic metres of 1P gas reserves, 408.343 billion cubic metres of 2P gas reserves, and 450.247 billion cubic metres of 3P gas reserves. These numbers represent onshore, offshore and marginal fields within the Brazilian territory. These expressive numbers are, to an extent, the result of a considerable increase of 3.37 per cent of the proven reserves in the pre-salt polygon area totalling 8.51 billion barrels, since 2019.

Brazil has four different bid proceedings in place that have enabled different-sized players to participate and, at the same time, has optimised fields less appealing to

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