Antaq authorizes E&P companies to charter offshore support vessels

​Last Thursday (April 8) at its 498th Ordinary Meeting – after more than a decade of discussions – the Board of Directors of the Brazilian Agency for Waterway Transportation (Antaq) approved an important regulatory change to enable oil and gas exploration and production companies (E&Ps) not authorized as Brazilian Shipping Companies (EBNs) to enter into time charter agreements with EBNs for offshore supply vessels.

According to Eduardo Nery, the case’s rapporteur and who the other directors unanimously supported, an EBN will be able to charter its Brazilian vessels and sub-charter foreign bareboat chartered vessels. This prerogative may be exercised provided that the nautical management remains with the EBN (owner) and the E&P company (charterer) does not use the vessel to provide navigation services to third parties and does not sub-charter. The EBN will be responsible for the chartering procedure and registration in the SAMA (Offshore Support Shipping Chartering System).

This is an essential change, which will cut red tape and reduce the tax impact when hiring offshore supply vessels, bringing Brazil closer to the contractual model widely used in the global oil sector.

The resolution and the corresponding reviews of the

Normative Resolution Np. 01/2015-Antaq and

Resolution No. 1.811/2010-Antaq are still pending publication in the Official Federal Gazette.

For more information about the impacts of these measures, contact Mattos Filho’s

Infrastructure and Energy practice area.