Since 2017 Brazil has been developing an environmental public policy which supports a reduction in greenhouse gas emissions. For this purpose, the Ministry of Mines and Energy instituted the RenovaBio programme, a federal and state programme which seeks to identify and review all types of biofuel in the Brazilian energy sector based on certain criteria. Further, the National Council for Energy Policy is expected to implement a 10-year plan to ensure an 8.6% reduction in the petroleum market.
The decommissioning of aging offshore units and related assets is a challenge for the oil and gas industry – not only in Brazil, but also worldwide. As such, the players involved in decommissioning projects – including the authorities, operators and subcontractors – should keep up to date with the relevant requirements and best practices in order to transform potential market crises into opportunities.
The National Petroleum Agency recently led the 15th bidding round in Rio de Janeiro, which reinforced international oil companies' (IOCs') interest in investing in Brazil. Eleven foreign and two national oil companies committed to paying approximately R8 billion in signature bonuses. The highest commitment was presented by the consortium between ExxonMobil, Petrobras and QPI. The IOCs have demonstrated their belief that the geological reserves in the Campos Basin are some of the most prolific on the planet.
The Brazilian National Agency of Petroleum, Natural Gas and Biofuels recently published Public Consultation and Public Hearing Notice 4/2018, which establishes the requirements necessary to undertake the production of biofuel activity and the operation of producing facilities. The proposal unifies the biofuels regulatory framework (biodiesel, biomethane and ethanol) in order to simplify administrative procedures, foster investments in the sector and reduce costs resulting from the regulation.
In order to improve the definition of and conditions for the use and disposal of fluids, gravel and cement paste resulting from drilling and production activity in Brazil, the Brazilian Institute for the Environment and Renewable Natural Resources (IBAMA) recently published Normative Instruction 01/2018. In doing so, the IBAMA established new definitions and specific criteria that must be followed, subject to the penalties provided in the law.