Overview of PSCs Baker McKenzie IBP.Final.pdf

As well as the relative working plans including the

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, as well as the relative working plans, including the measurement points and the sharing of oil, natural gas and other fluid hydrocarbons produced; XIV – the necessity for the contractor to provide ANP and the public company addressed in paragraph 1 of art. 8 with reports, data and information concerning the contractual performance; XV – the criteria for the return and clearance of the areas by contractor, including the removal of equipment and facilities, as well as reversal of assets; XVI – the penalties applicable in case of default with the contractual obligations; XVII – the procedures related to the assignment of rights and obligations relative the contract, according to the provision set forth in art. 31; XVIII – the rules on settlement of disputes , and it may provide for conciliation and arbitration ; XIX – the contractual effective term, limited to thirty-five years , and the conditions for its extinction; and XX – the value and payment form of the signature bonus . Brazilian Model PSC Continued
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112 Brazilian Model PSC Continued Art. 30. PETROBRAS, as the operator of the production sharing contract, shall : I – inform the operating committee and ANP, within the contractual term, the discovery of any deposit of oil, natural gas or any minerals; II – submit to the approval of the operating committee the discovery evaluation plan for oil and natural gas deposits, in order to determine their merchantability; III – carry out the evaluation of the discovery of the oil and natural gas deposit under the terms of the evaluation plan approved by ANP, presenting a merchantability report to the operating committee; IV – submit to the operating committee the field’s production development plan, as well as the working and production plans, describing schedules and budgets; V – adopt the best practices in the oil industry, in compliance with the applicable technical and scientific rules and procedures, and using the appropriate recovery techniques, aiming at rationalizing the production and control of decline in reserves; and VI – submit to the operating committee all data and documents relative the activities performed.
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113 Art. 31. The assignment of the rights and obligations relative the production sharing contract may only take place pursuant to the previous and express authorization of the Ministry of Mines and Energy , upon hearing ANP , in compliance with the following conditions: I – protection of the contractual purpose and its conditions; II – compliance, by the assignee , with the technical, economic and legal requirements established by the Ministry of Mines and Energy; and III – exercise of the preference right of the other joint venturers, proportionately to their participations in the joint venture.
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  • Winter '14
  • Bijay K Behra
  • contractor, Petroleum industry

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