• 30 mins Enbridge Pipeline Expansion Finally Approved
  • 2 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 hours OPEC Oil Deal Compliance Falls To 86%
  • 18 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 20 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 22 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 24 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 1 day Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 1 day Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 7 days Niger Delta State Looks To Break Free From Oil
  • 8 days Brazilian Conglomerate To Expand Into Renewables
Oil Prices Spike On Middle East Tensions

Oil Prices Spike On Middle East Tensions

Oil prices jumped upwards on…

What’s Stopping An Oil Price Rally?

What’s Stopping An Oil Price Rally?

Oil prices rallied in Q3…

What’s Next For Big Oil Now Brazilian President Rousseff Is Suspended?

Dilma Rousseff

Brazilian President Dilma Rousseff has been suspended from office following a senate vote to initiate her impeachment trial on corruption allegations that lead back to state-run Petrobras, leaving vice-president Michel Temer to take over in the interim, while foreign oil companies wait anxiously to see what this will mean for the industry.

Rousseff has denied any wrongdoing and refers to the impeachment process as a ‘’coup’’.

Temer is an academic who has also been accused of corruption. He is expected to take office today. He may remain in office until the end of Rousseff’s term in 2018 if the senate votes this through. For now, however, the senate has voted only to suspend Rousseff for 180 days.

Related: Kuwait Plans To Ramp Up Oil Production By 44% Before 2020

Temer is expected to pursue privatization of state assets if he is left in office, and Brazil’s strong labor unions will fight this. An immediate strike has already been threatened by the labor union behind Transpetro—Petrobras’s transportation subsidiary—over Rousseff’s suspension. Other industry-related labor unions are also talking about strikes.

For the oil industry, nothing is clear. While the industry is seeking reforms on a number of levels, including changes to rules that require state-run Petrobras to have a 30-percent operating stake in all sub-salt projects and changes to tough local content rules, nothing is likely to be decided until Rousseff’s status is definitive.

Related: OPEC Is Dead, What’s Next?

At the same time, there were already indications that the oil industry was gaining ground with the current government. The day before Rousseff’s suspension announcement, Brazil said it was planning to push through new regulations any day that would allow companies other than state-run Petrobras to operate some sub-salt projects, according to anonymous sources cited by Reuters. These projects are part of the Subsalt Polygon—where the major discoveries have been—and presently only Petrobras can operate them.

There has been no independent confirmation of this report, and it remains unclear what the status of this potential relaxation may be in light of Rousseff’s suspension.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News