Regulation in the world: sharing and concession regimes

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To understand its vast scope of activity, it is worth noting that the ANP is responsible for regulating the exploration and production of oil and gas , promoting studies to expand knowledge about Brazilian reserves, collecting and storing data, and promoting bids and concession contracts on behalf of the Union; the movement of liquid products , such as pipeline and waterway transport, as well as the storage of products and different types of loading and unloading services. In addition, the ANP is also responsible for authorizing companies to build, operate, and expand refineries for processing and storing natural gas and liquid products.


Other responsibilities of the agency can also be observed regarding the entire process of importing and exporting oil, its derivatives and biofuels , as well as specifying the quality of products and regulating distribution and resale , in addition to monitoring ethanol and biodiesel production plants and promoting auctions. In this sense, it is worth noting that it is also the responsibility of the ANP to guarantee the entire national supply , thus protecting the interests of fuel consumers.


Thus, the importance of the agency for the country's development becomes evident, since the ANP must operate as an intermediary between actions that promote Brazilian economic and social growth - since all of its inspection and monitoring work must focus on regulation itself, so that it can ensure that companies in the sector are in compliance with turkey mobile database standards and legislation, in addition to stimulating competitiveness, and also with the entire evolutionary aspect, which must foster research and innovation, in order to enable the country's progress and, consequently, regulate activities so that there are benefits for the entire society.


Brazil is increasingly moving towards becoming one of the world's largest oil powers. To this end, it relies on both the concession and the sharing regimes. This means that, under the sharing regime, the Ministry of Mines and Energy (through the National Energy Policy Council), for example, can decide whether to hold tenders for exploration or to hand over certain areas directly to Petrobras – one of Brazil's largest state-owned companies, which gained a monopoly on oil operations in 1997.


When opting for the bidding process, the board must first offer Petrobras the option of operating the blocks that are to be contracted. If interested, the company must inform which areas it will operate in and will have a guaranteed minimum share of 30% in the consortium that wins the bid. The remaining 70% will be auctioned and Petrobras may still join the consortium of companies that will explore this surplus.


In the concession model, which is in force for other oil fields in the country, the concessionaire company assumes the risk of investing and finding or not finding the fuel – and owns all the oil and gas that may be discovered and produced in the concession area. The concessionaire bidding process is won by whoever offers the highest value in government shares.