Abstract
This chapter aims to provide a brief overview of onshore unconventional resources in Brazil. In this task, it analyzes the shale gas potential on Brazilian sedimentary basin. In addition, we described the regulatory framework related to shale gas as well as the currently concession agreement. Then we address the challenges that we consider crucial to realize the unconventional in Brazil: exploration deadlines, chain supplier of goods and services and environmental licensing. We conclude that the exploitation of unconventional resources in Brazil, could be a strategy to join forces to ensure a stable supply of natural gas in the long term, but the operationalization of this path suffered a series of setbacks regulatory, legal and economic that denounce certain fragility of the attractiveness of the Brazilian Upstream.
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Notes
- 1.
“2.7 The deposits of Petroleum and Natural Gas existing in the national territory, on the continental shelf and in the exclusive economic zone belong to the Federal Government, in accordance with article 20, section V and IX of the Federal Constitution and article 3 of Law no. 9,478/97. 2.7.1 The Dealer will have the sole ownership of the Oil and Natural Gas that may be effectively produced and conferred to it on the Production Measuring Point by means of original acquisition and in accordance with this Contract”. (Brazil Rounds 2013a).
- 2.
“1.3.36 Extended Exploratory Period: contractual period contained in the Extended Exploration Phase that starts when a Non-Conventional Resources Exploration and Evaluation Plan proposed by the Concessionaire after a Discovery of a Non-Conventional Resource is approved.” (Brazil Rounds 2013a).
- 3.
“3.4 Technical Qualification The interested company may request its technical qualification as Operator A, B, C or Non-Operator. The technical qualification will be based on the production volume, amount of investments in exploration and previous operational experience of the interested company or, alternatively, the experience of the members of its technical personnel in exploration and production of oil and natural gas.” (Brazil Rounds 2013b).
- 4.
“4. The qualified operating companies shall be classified in three categories: Operator “A”, company qualified to operate in the blocks located in deep/ultra-deep waters, shallow waters and onshore; Operator “B”, company qualified to operate in blocks located in 12 shallow waters and onshore; and Operator “C”, company qualified to operate only in the blocks located onshore, except in the blocks of Acre-Madre de Dios Basin.” (Brazil Rounds 2013b).
- 5.
According to the Tender Protocol, the minimum net asset to the Operator A is the amount of R$ 107,000,000.00 and to the Operator B is the amount of R$ 59,000,000.00 (item 3.5.4.1) (Brazil Rounds 2013b).
- 6.
Special Customs Regime allows for the import of goods designed for research and extraction of oil and natural gas deposits.
- 7.
Brazilian Government Agency for Law Enforcement.
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Acknowledgments
The authors gratefully acknowledge the support of the Institute of Energy and Environment of the University of São Paulo, the National Agency of Petroleum, Natural Gas and Biofuels, CAPES (Process n.23038.003802/2014-53) and RCGI - Research Centre for Gas Innovation, hosted by University of Sao Paulo (USP) and sponsored by FAPESP - Sao Paulo Research Foundation (FAPESP Process n. 2014/50279-4), without which the present study could not have been completed.
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Costa, H.K.d.M., Cintra, M., Pereira, E.G., dos Santos, E.M. (2018). Regulatory Framework of Upstream and Onshore Unconventional Gas in Brazil. In: Fontoura Costa, J., Rosado de Sá Ribeiro, M., Xavier Junior, E., Rocha Gabriel, V. (eds) Energy Law and Regulation in Brazil. Springer, Cham. https://doi.org/10.1007/978-3-319-73456-9_3
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