Brazil set out provisional rules Dec. 22 for Pre-sal Petroleo SA (PPSA), the state company managing contracts, to develop the coveted offshore presalt layer to market the government’s share of oil and gas.
Development of presalt, where oil is trapped under a layer of salt beneath the ocean floor, is governed by production-sharing contracts that require companies to give so-called profit oil to the government for sale by PPSA.
But before Dec. 22, no rules had been set to dictate how PPSA sells that output, which is the percentage pledged to the government after factoring in costs.
The decree published Dec. 22 allows PPSA to conclude contracts on behalf of the government with trading agents or sell the oil directly, preferably by auction.
The rules take effect immediately but require congressional approval to become permanent.
Recommended Reading
Tech Trends: Halliburton’s Carbon Capturing Cement Solution
2024-02-20 - Halliburton’s new CorrosaLock cement solution provides chemical resistance to CO2 and minimizes the impact of cyclic loading on the cement barrier.
NAPE: Chevron’s Chris Powers Talks Traditional Oil, Gas Role in CCUS
2024-02-12 - Policy, innovation and partnership are among the areas needed to help grow the emerging CCUS sector, a Chevron executive said.
E&P Highlights: Feb. 5, 2024
2024-02-05 - Here’s a roundup of the latest E&P headlines, including an update on Enauta’s Atlanta Phase 1 project.
E&P Highlights: Feb. 16, 2024
2024-02-19 - From the mobile offshore production unit arriving at the Nong Yao Field offshore Thailand to approval for the Castorone vessel to resume operations, below is a compilation of the latest headlines in the E&P space.
E&P Highlights: March 15, 2024
2024-03-15 - Here’s a roundup of the latest E&P headlines, including a new discovery and offshore contract awards.