What are E&P Consortium's
The Exploration and Production consortium is an association of companies formed in order to share risks, high amount of investments and long term returns of E&P projects. Internationally, they are called 'joint venture'. In Brazil, E&P JVs are organized in accordance with the Article 278 and 279 of the Law 6404/1976.
In the 1990s, with the alteration of articles of the Constitution of the Federative Republic of Brazil and the promulgation of the current laws 9.478/1997 and 12.351/2010, national and international companies began to operate in the exploration and production activities in Brazil through:
- Disputing blocks in auctions held by the National Petroleum, Natural Gas and Biofuels Agency (ANP);
- Raising equity or reviewing negotiations, known as farm in and farm out.
The joint venture is governed by a contract, recorded in the board of trade, which should bring the following:
The name of the consortium if any
The Company that constitutes the object of the consortium
The duration, address and jurisdiction
The definition of duties and responsibilities of each consortium member company, and specific services
Guidelines on management of the consortium, accounting, representing a consortium of companies and administration fee, if any
Form of deliberation on matters of common interest, with the number of votes that it is up to each participant
Contribution of each participant for the common expenses, if any. The consortium contract and its amendments will be filed with the Commercial Registry of the place of its headquarters, and the certificate of the filing was published.
Petrobras and E&P Joint Ventures
The Participation of PETROBRAS in the E&P Joint Ventures in Brazil is aligned with its Strategic Plan, based on the pillars of growth, profitability, and social and environmental responsibility.
Petrobras is the operator of more than 350 E&P concessions existing in the brazilian territory, and more than 60 of these are in Joint Ventures. As non-operator, Petrobras is associated in more than 40 E&P JVs.
As most of the E&P Joint Ventures is in the exploratory stage, is expected an increase of the oil produced in partnerships in relation to the total oil produced by Petrobras in Brazil.
More than US$ 100 billion of investments planned and considering the production sharing bidding round, announced by ANP, almost all concessions operated by Petrobras with a focus on pre-salt are in JVs with other companies.