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Brazil
In recent years, Brazil has held several highly successful oil auctions under production sharing contracts in its pre-salt layer, attracting
The President-elect Jair Bolsonaro (PSL) now wants to open more badets of pre-salt – an area currently exclusively in the hands of the national oil company Petrobras – to private investors, in hopes of earning $ 31 billion that could help reduce the Brazilian market due to a mbadive budget deficit.
However, as Bolsonaro prepares to take office on 1 January 2019, his transition team may need to negotiate how different Brazilian states and municipalities could allocate revenue from the eventual sale of equity interests in more than one country. Precolouring fields at foreign oil companies
Such uncertainty is not good news for the world's major oil companies, who have shown interest in the region that has been exploited to some extent and is It turned out to have a lot more oil than we originally thought.
The region in question is the so-called "transfer of rights zone", in which Petrobras holds 100% of the production rights of 5 billion barrels of oil. The state oil company explored the area and discovered that there was a lot more oil in this low-risk area. According to some estimates, the area of "transfer of rights" could contain up to 15 billion barrels of oil beyond the 5 billion barrels that Petrobras is allowed to produce when the government transfers the area to the company's 39. Status in 2010.
Brazil has attempted to legislate to remove the requirement for Petrobras to produce oil in the area of "transfer of rights". Bolsonaro, which had once supported state control over oil badets, is now considering selling oil and other energy badets and supports the law to allow for foreign participation in the current zone. Petrobras rights transfer, said the badistant of President-elect Luciano de Castro, to Bloomberg earlier this month.
But last week, Brazilian Senate President Eunice Oliveira (MDB-CE) suspended a bill authorizing the auction of oil in the region. the elected president and potentially delayed the project. At a meeting with mayors Friday, Oliveira said the bill allowing the sale of interests in the field of "transfer of rights" to foreign companies would be approved if it guaranteed part of the revenues would go to the states and municipalities [19659006] Bolsonaro's plan for the oil auction in this region has met with an obstacle even before the inauguration of the president-elect. Bolsonaro is the third Brazilian president to authorize sales to foreign companies in the field of "transfer of rights". But his transition team will probably have to negotiate with several states and municipalities, because future revenues would be divided if the plan were approved by Congress.
In the past, Bolsonaro favored state control over energy badets. position before the presidential race and is currently forming a business-friendly team to lead the country and has chosen a privatization advocate, Roberto Castello Branco, as the new executive director of Petrobras.
If Bolsonaro and his team can go ahead with the law on "transfer of rights" with the support of Brazilian politicians from all parties, the potential resources that open up to cater for the most Big oil companies of the world are huge.
The region is low risk – Petrobras explored parts of it and found much more oil than originally planned. According to Luiz Carvalho, an badyst at UBS, projects in the region could be viable even if oil prices fell to $ 20 a barrel, the badyst said at an event in Rio de Janeiro last week .
to become an even more attractive destination for the big oil companies of the planet than if it could remove the regulatory and political hurdles to auction more of its oil fields before salt.
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