Examining transfer of rights surplus—Brazilian case

Abstract

At the end of 2019, Brazil realized an enormous offshore premium assets under the ‘Transfer of Rights’ (TOR) regime. It was a key milestone that later set in motion the largest oil bidding round in history, according to the Brazilian authorities. TOR is a regime that deviates from the general rule of holding bids prior to the granting of oil & natural gas E&P rights. No legal dispositive was able to predict the possibility which impose Brazilian government design an innovative portfolio of regulations in order to achieve high productivity and profitability. A new regulatory framework was created to support the decision makers. Transference of Rights Surplus came to lead with surplus volume bidding rounds. Future biddings will take place at another level of institutional maturity to deal with the situation, and takes advantage of the learning and tools already developed. It is expected that the changes being discussed will bring attractiveness to the offer of the areas in the current scenario.