Participation Fees

Section 3.10 of the Initial Tender Protocol

Along with securing the technical, financial, and legal qualifications previously described, in order to take part in Brasil Round 8, companies must pay a Participation Fee that varies according to the basin where the blocks are located. Such Fees may be paid by sector or group of sectors, exclusively according to the details in Table 7 of the Final Tender Protocol. Companies may only submit bids for blocks located in the basin sectors for which they have paid Participation Fees.

The Participation Fees are shown in the table below. Data Packages will be made available to the companies after payment of the Participation Fee and presentation of the Expression of Interest.

Participation Fees may be paid in Brazilian Reais. If paid outside Brazil, the amount will be equivalent to the US Dollars amount converted at the official "buy" exchange rate (BACEN/Ptax compra) published by the Central Bank one working day prior to the payment.

Companies who have paid Participation Fees for certain sectors or group of sectors, may later pay additional Participation Fees for other sectors. In this case, the company shall present Annex II again.

Companies are required to pay the appropriate Participation Fee whether bidding alone or in a Consortium. Instructions for the payment of the Participation Fee may be obtained at the Annex II of the Round 8 Tender Protocol. The Participation Fee will not be returned to the company, unless ANP excludes any sector or part of sector for technical or environmental reasons.

The deadline to pay the Participation Fee is November 11, 2006.

Table 7 - Groups of Data Packages and Participation Fees

Note: This guide is only provided for general orientation of prospective participants of Brasil Round 8. Details on the qualification process must be obtained at the Final Tender Protocol.