The Board of Directors of Petrobras approved the signature of an agreement with the Federal Government that establishes the participations in each contract and the compensation value to Petrobras in the case of bidding of the excess volumes of the Transfer of Rights in the fields of Sepia and Atapu.
The Transfer of Rights contract, signed in 2010 between Petrobras and the Federal Government, included the exercise of exploration and production activities in the areas of Sepia and Atapu, in a production volume limited to 500 million barrels of oil equivalent (boe) in Sepia and 550 million boe in Atapu. In 2019, in view of the absence of bids in the bidding under the sharing of volumes in excess of the onerous assignment contract in the Sepia and Atapu areas, Petrobras and Pre-sal Petroleo SA (PPSA), qualified as a representative by the Union, negotiated conditions more competitive to carry out a new bidding process for the areas, to the benefit of both parties.
With the publication of MME Ordinance No. 23/2020, complemented by MME Ordinance No. 493/2021, Petrobras and PPSA reviewed and previously defined the amounts of compensation to be paid by the new contractor to Petrobras due to the deferral of the new bidding process. cash flow in both areas, as well as the participation of the Transfer of Rights and sharing contracts, providing greater predictability and attractiveness to the bidding process.
After technical discussions, Petrobras and the Federal
Government reached the following terms: The values ??of the firm net compensation will be increased by a supplement ( earn out), due between 2022 and 2032, which will be payable as of the last business day of January of the year following the year in which the Brent oil price reaches an annual average higher than US $ 40 / bbl, limited to US $ 70 / bbl . The earn out tables will be released by the Ministry of Mines and Energy, after approval of the agreement by the Minister. Such supplements have a one-year grace period for the payment of the first installment of the earn out, from 2023 to 2024, adjusted at the rate of 8.99% pa.
To the value of the net net compensations will be added the tax effects related to the Corporate Income Tax and the Social Contribution on the Net Profit caused by the transfer of ownership of Petrobras assets to those contracted under the Production Sharing regime, whose economic burden will be the winner of the bid. In the case of the compensation supplement ( earn out ), tax effects will already be included.
The envisaged conditions will be reflected in a Co-Participation Agreement that will bind Petrobras and the new contractor in the area (s). The Co-Participation Agreement will only be effective with the signing of the Production Sharing Contract and the payment of compensation to Petrobras, when the contractors will have access to their participation in the production from the Sepia and Atapu fields.
The Agreement was examined by the Statutory Audit Committee (CAE), the Minority Committee (COMIN) and approved by the Petrobras Board of Directors. However, its validity depends on approval by the Minister of Mines and Energy.