AmericasOffshore

Bill approved that would reduce Petrobras’ subsalt obligations

Brazil on Thursday moved an important step nearer removing state oil firm Petrobras’ monopoly rights on projects in the resource-rich Subsalt Polygon with a decision by a Congressional committee, according to Reuters.

The Subsalt Polygon is a region in the Atlantic Ocean offshore Sao Paulo and Rio de Janeiro. It is believed to contain at least 100bn barrels of oil and natural gas (barrels of oil equivalent or boe).

Back in February Brazil’s Senate passed the bill that ended Petrobras’ obligation to provide 30% funding for all new developments in the offshore Subsalt Polygon and to operate all new projects there. That had been seen as a burden on the hugely indebted, corruption-plagued firm.

On Thursday a committee of the lower house voted to recommend the same bill, freeing it up for a vote in the lower chamber possibly as soon as next week.
Brazilian authorities hop passage of the bill will encourage greater investment in oil production.

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Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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