Almeida Advogados

Sao Paulo Rio de Janeiro Brasilia Belo Horizonte

Almeida Advogados has significant experience in representing clients during all stages of investment and operations.

We assist clients in this sector with all of their legal needs, particularly regarding supply, generation, transmission, distribution and marketing.

Energy, Petroleum and Gas

In August 1997, Law No. 9478 (also known as the Petroleum Law) was enacted, thus initiating a new period for the petroleum industry in Brazil. Based on that legislation, the National Petroleum Agency (ANP) was created, effectively ending Petrobras’ monopoly.

The Petroleum Law governs Constitutional Amendment 9, which changed the Brazilian federal government’s monopoly system by allowing state and private companies to develop, produce and transport petroleum and natural gas, all activities previously undertaken solely by Petrobras.

Since implementing the current regulatory system and creating the ANP, petroleum and natural gas companies’ revenues as a percentage of Brazilian gross domestic product have risen significantly.

According to the ANP, confirmed petroleum reserves in Brazil increased from 7.1 billion barrels at the beginning of 1998 to 12.6 billion barrels in 2007, a 78% increase. During that same period, natural gas reserves rose from 227.7 billion m³ to 365.0 billion m³.

From 1998 to 2007, Brazilian oil production expanded from 865.7 thousand daily barrels to approximately 1.8 million daily barrels. Similarly, natural gas output almost doubled from 26.9 million m³/day to 49.7 million m³/day.

No longer a secondary source of energy, natural gas expanded its market share from 3% to 10%. In addition, biodiesel jumped from 0% (pre-discovery) to at least 3% of diesel sold in Brazil, as mandated by National Board of Energy Policy resolutions.

As a result, revenues from petroleum and gas have allowed for greater investments in infrastructure and social development. Specifically, the Brazilian government earned over R$82 billion between 1998 and 2007 in royalties, investments, subscription bonuses and lease payments.

Among its other duties, ANP establishes rules through ordinances, normative instructions and resolutions. In addition, the organization continues to promote bidding. and enters into agreements with concessionaires on behalf of the Brazilian government for developing and producing petroleum and natural gas. Finally, it supervises industries acting directly or through partnerships with other public entities.

With Petrobras’ monopoly now history, new participants have entered the market, and now contribute to the country’s infrastructure.

Almeida Advogados has significant experience in representing clients during all stages of investment and operations, including with agreements, bidding processes, and environmental, regulatory and tax matters.

Our firm works directly with companies in preparing and negotiating agreements, advising on the granting of permits from regulatory bodies and agencies, and providing support on audits and environmental, labor and civil matters.

The firm also has comprehensive experience in advising clients on all stages of supply, production, transmission, distribution and sale of energy and natural gas. Finally, we  represent clients in recovering loans and pursuing delinquency and indemnity claims against distributors.