Brazil seeks large share in big oil fields-report

Brazil is considering changes
to oil legislation that would secure the government large
stakes in the biggest fields in the massive sub-salt oil region
off the nation’s coast, Chief of Staff Dilma Rousseff told
Valor Economico in an interview published on Friday.

In 2007 Brazil discovered some 8 billion barrels of crude
in the Tupi field, opening a new oil exploration frontier deep
below the Atlantic that could hold more than 50 billion
barrels.
The government is drafting new oil laws to boost state
control over the massive finds, including proposals for the
state to impose limits over private companies’ participation on
the exploration and commercialization of that oil.

The government will decide on a case-by-case basis the
percentage of production it wants from each sub-salt field that
could be put up for auction, Rousseff told Valor.

In the most productive fields the government may hire
state-controlled oil company Petrobras (PETR4.SA) as its sole
operator, Rousseff said.

“In fields we are certain of the existence of big reserves,
we will hire Petrobras directly. In that case, we won’t hold an
auction,” she said.

Reuters