Latest updates

15th bid round boosts investments, while ANP softens local content rules
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • May 14 2018

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.

ANP submits new rule for authorising performance of biofuel production
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • April 16 2018

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.

IBAMA: new requirements for disposal of fluids, gravel and cement paste
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • February 12 2018

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.

New resolution regulates offshore and port support, cabotage and deep-sea navigation
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • February 07 2018

The National Agency for Waterway Transportation recently published Normative Resolution 18, regulating the rights and duties of users, intermediary agents and companies operating in offshore and port support, cabotage and deep-sea navigation and establishing administrative infractions. The normative has ultimately introduced innovations into this field – for example, regarding the regulation of intermediary agents and refusals to provide maritime transport services.

Superior Court of Justice recognises validity of foreign ship mortgages
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • November 29 2017

The Superior Court of Justice has reversed previous Sao Paulo State Court rulings and recognised the validity of foreign ship mortgages in Brazil. Respecting the acts of sovereignty of countries where vessels are registered, the court highlighted the economic importance of acknowledging ship mortgages of foreign states and emphasised that large vessels must be registered in their flag states and that these registrations have extraterritorial effects.

ANP proposes flexibility for local content rules in contracts signed after 2005
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • October 23 2017

The Brazilian National Agency of Petroleum, Natural Gas and Biofuels recently published Notice of Public Consultation and Public Hearing 20 in order to collect input regarding the new rule which will increase the flexibility of the local content rules provided for in concession contracts entered into between the seventh and 13th bidding round for onerous assignment, as well as the first production sharing bidding round of the exploration of oil and natural gas blocks.

Improved regulatory and import rules attract new oil and gas investors
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • October 16 2017

The initial expectation from some market analysts with respect to the outcome of Brazil's 14th bidding round was conservative, with Brazil's political turmoil and the downturn in the oil and gas sector clearly inciting this uncertainty. However, it seems that the government's initiative to extend the special customs regime for the import of rigs, vessels and equipment until 2040, as well as its adjustment of the rules in relation to local content requirements, ensured the round's success.

Mandatory insurance and maritime accidents: law versus reality
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • October 11 2017

Federal law provides that all vessels registered before Brazil's port captaincies must buy the mandatory insurance for personal injury caused by vessels or their cargo. However, such insurance has been discontinued due to a lack of insurers willing to underwrite the risks involved. Now, after a number of passenger fatalities in recent accidents, industry players and the government are being called on to ensure that policies are offered which soften the burden borne by victims and their families.

Ministry of Labour regulates ship demolition activities
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • October 04 2017

The Ministry of Labour recently published Ordinance 790, amending Regulatory Standard 34 on Working and Environmental Conditions in the Shipbuilding and Ship Repair Industry. The amendments also regulate ship demolition activities. According to the Ministry of Labour, this is because the Brazilian fleet is aging and thus the demand for ship demolition activities may increase.

International convention prevails over Consumer Protection Code
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • September 27 2017

A majority of the Supreme Court recently ruled that the rules and international treaties limiting the liability of passenger airline carriers – in particular, the Warsaw and Montreal Conventions – prevail over the Consumer Protection Code. Among other things, this decision means that the value of compensation for lost luggage will be limited to the threshold set out in Article 22 of the Warsaw Convention and the amendments made by subsequent international agreements.

Legislative bill obliges automatic measurement of fuel on vessels
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • March 29 2017

Legislative Bill 5018/2016, which is pending approval in the House of Representatives, requires vessels to use an automatic system to measure fuel during navigation. The bill seeks to increase the safety of navigation by preventing vessels from beginning their journeys using precarious methods to assess the quantity of fuel, which can result in fuel exhaustion – a serious risk for the safety of passengers and crew and navigation of the vessel.

Federal court suspends FPSO international tender launched by Petrobras
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • February 20 2017

A recent decision rendered by the Brasilia Federal Court of Appeals suspended one of the most anticipated Petrobras international tenders for the charter and operation of a floating production, storage and offloading unit in the Libra field, the largest oil field in the pre-salt region. The suspension will remain in effect until the Brazilian National Agency of Petroleum, Natural Gas and Biofuels rules on Petrobras's local content waiver request.

New law enacted for alterations to pre-salt rules
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • December 12 2016

President Michel Temer recently enacted Law 13.365/2016. The law makes the participation of Petrobras as the exclusive pre-salt operator optional, while setting out Petrobras's pre-emptive right. With the enactment of the new law, the Brazilian government is preparing to conduct the second production sharing round, which will offer four pre-salt areas, in the second half of 2017.

CNI requests revocation of maritime agreement between Brazil and Chile
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • November 30 2016

Brazil's National Industry Confederation recently asked the Ministry of Foreign Affairs to terminate the maritime transport agreement between Brazil and Chile. A representative from the Brazilian Ministry of Foreign Affairs stated that the government's decision on this matter will consider the position of not only the Ministry of Foreign Affairs, but also the Ministry of Transport, Ports and Civil Aviation and the Ministry of Industry, Foreign Trade and Services.

Court of Appeals rules that arbitration clauses apply to cargo insurers
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • September 21 2016

The Sao Paulo Court of Appeals recently upheld a first-instance decision that, by virtue of subrogation, the insurer was subject to all of the insured's ancillary rights and obligations, including the carriage contract's arbitration clause. The decision sets an important precedent and reinforces the need for insurers to assess all aspects and limits of an underlying carriage contract entered into by the insured before issuing insurance cover.

ANP calls for public hearing to discuss local content rules
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • July 13 2016

The National Agency of Petroleum, Natural Gas and Biofuels recently published Notice of Public Consultation and Public Hearing 9. The consultation and public hearing sought comments regarding the enactment of a regulatory act which will declare whether maritime vessels used to acquire seismic data that were built or remodelled in Brazil between 2008 and 2015 fall under the local content exemption rule.

Rio de Janeiro begins levying tax on production of oil and gas
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • July 04 2016

As of May 2016 Rio de Janeiro has begun to levy a new state environmental control and inspection tax on the control, monitoring and supervision of research, mining, exploration and production of oil and gas. All legal entities authorised to conduct such activities are subject to the tax.

ANTAQ reviews rule for granting shipping company authorisation
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • April 27 2016

The Brazilian National Agency for Waterway Transportation (ANTAQ) recently published Normative Resolution 5/2016, which approves the rule for providing authorisation to legal entities to perform transportation activities in coastal and deep-sea navigations or operate in offshore and port support navigation.

Change in pre-salt law will attract new investors
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • April 25 2016

The end of Petrobras's monopoly in the pre-salt exploration may become a reality in the near future. Bill 4567/2016, which was recently approved by the Senate and remitted to analysis and approval by the Chamber of Deputies, aims to amend Law 12.351/2010, which regulates the exploration and production regime in the pre-salt area. If passed, the bill will help to attract new investors and allow other companies to be in charge of the exploration.

Brazil adopts international convention on seafarers' identity documents
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • March 16 2016

The presidency recently published Decree 8605, enacting the International Labour Organisation's revised Convention 185/2003 and attachments, which address the new seafarers' identity document. The convention applies to all persons who are employed in any function on board a vessel (other than a war vessel) and habitually engage in maritime navigation.