Petrobras Clarifies Procedure to Notify ANP of Hydrocarbon Finds
Petrobras has clarified the mandatory procedures involved in the notification of signs of hydrocarbons (HC) to the National Petroleum Agency (ANP) and the story aired by Agencia Estado's Broadcast titled "Petrobras Announces New Oil Discoveries to the ANP."
The exploratory block concession agreements signed with the ANP determine that any discovery or sign of oil, natural gas or other hydrocarbons in the concession area be notified to the ANP, exclusively and in writing, in no more than 72 hours, by the Operator. This requirement appears in the regulating agency's standard agreements and is demanded of all concessionaires that operate in Brazil, as governed by the pertinent legislation.
It must be emphasized that this notification is not related to the discovery's commerciality or to the announcement of reserves. In effect, in isolation, the information that signs of hydrocarbons were found is of no significant value to the Company's business and, thus, does not impact Petrobras stock trading. Therefore, it is not necessary to divulge this fact via Market Announcements or Material Facts. Although signs of hydrocarbon are positive it is not conclusive; it will become relevant when associated with new studies and new evidences and so, in this case, Petrobras will proceed to divulge it to the Securities Exchange Commission (CVM), regulatory entities, and to the other stakeholders.
On account of the great interest in the Santos Basin's Pre-Salt region, in the last year Petrobras has been informing the market, via Announcements or Material Facts, regarding all of the stages involved in the exploratory phase of this area’s blocks, including the discovery of signs of hydrocarbons, to avoid speculation and misinformation about this area.
However, with regard to discoveries made in other regions (onshore, shallow, deep and ultradeep waters, except for the Pre-Salt), the Company maintains the policy of only notifying the ANP about signs of hydrocarbons. If subsequent assessments show the fields are commercial and, thus, relevant, Petrobras will then proceed to largely divulge it.
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