Brazil legislature approves new offshore petroleum royalty distribution plan
Nov. 9, 2012
A new oil exploration reform rule that applies to the offshore Brazil presalt reportedly has passed the Chamber of Deputies and awaits signing by President Dilma Rousseff to become law.
Offshore staff
BRASILIA, Brazil –A new oil exploration reform rule that applies to the offshore Brazil presalt reportedly has passed the Chamber of Deputies and awaits signing by President Dilma Rousseff to become law. The Senate already passed the legislation.
The new rules would change the way royalties are distributed among the states to send more revenue into those states without petroleum production. Also, added revenues would go into a federally administered “social fund.”
This move also clears the path for the first auction of subsalt acreage controlled by the government under new production-sharing agreements.
Some representatives from states with offshore production oppose the new rule and say they will go to court to fight its implementation. Whether that happens and what affect it has on the auction plans remains to be determined.
