We submitted to the National Energy Policy Council (CNPE), today, our first formal statement regarding the preference right for the second and third rounds of the exploration block bids under the production sharing system, pursuant to Act 12,351/2010 and Federal Decree 9041/2017.
Considering the parameters provided for under CNPE resolutions 2 and 9, of 2017, after technical analysis, approval by the Executive Board, and a resolution within the Board of Directors, we decided to exercise preference rights for the following areas, with a minimum percentage of 30 percent in each area, focusing on maximizing portfolio value:
• Second Round: Unitizable area adjacent to the Sapinhoá field;
• Third Round: Peroba and Alto de Cabo Frio Central.
The amount corresponding to the signing bonus to be paid by the company, considering that auctions results confirm only the above-mentioned minimum stakes in each block, is R$810 million. New priorities were set in the planning to foresee the financial resources to acquire these exploratory areas, with no impact on the metrics during the period of the 2017-2021 Business and Management Plan.
Our position in these bids is aligned with the fundamentals of the Strategic Plan, which provides for the sustainability of oil and gas production, with the strengthening of the exploratory portfolio and operating in partnerships.
The flow chart below represents the possible scenarios for exercising of preference rights, pursuant to Decree No. 9047 of May 2, 2017:
It is important to note that Petrobras may increase the percentage of 30 percent indicated for the areas where it is exercising its preference rights, forming consortia to participate in the bids.
Regarding the areas in which we do not exercise our preference rights, the company may participate on an equal basis with other bidders, either as an operator or non-operator.
With the completion of these two rounds, scheduled for 2017, we will report the results of our participation to the market, in compliance with current legislation.