• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 7 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 10 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Iraq Moves to Take Control of Kurdistan's Finances

Iraq Moves to Take Control of Kurdistan's Finances

The Iraqi federal government is…

ExxonMobil's Record Profits Defy Political Expectations

ExxonMobil's Record Profits Defy Political Expectations

ExxonMobil has achieved its highest…

Big Oil Lashes Out At Brazil For Surprise Crude Export Tax

Big Oil majors with operations in Brazil have filed an injunction against a new oil export tax that the Lula da Silva government introduced surprisingly a week ago.

The Brazilian government announced at the start of this month that it would collect taxes on crude oil exports for four months in a bid to offset the effects of an earlier decision to keep fuels tax-exempt, Reuters reported at the time.

That decision, however, was made without consulting the industry and it will increase uncertainty about future investments in Brazil’s oil and gas resources, according to Shell, one of the authors of the injunction, which spoke to Bloomberg.

Shell has been joined by the local subsidiaries of TotalEnergies, Repsol, Equinor, and Portugal’s Galp in fighting back against the government’s decision.

“This measure, which was announced with no significant consultation with the industry, brings uncertainty to new investment decisions, negatively impacting the country’s competitiveness in the upstream sector – one where Brazil carries significant geological potential,” Shell told Bloomberg.

The sentiment was recently expressed by a local oil company executive as well. Decio Oddone, chief executive of Enauta and former head of Brazil’s National Petroleum Agency, said the tax decision represents a departure from the country’s tradition of respecting contracts.

Oddone said, as quoted by Reuters, that this tradition has been essential for the success of recent oil and gas tenders, which in turn have led to an increase in oil and gas investments.

"This was fundamental for us to be able to attract that amount of investment that we attracted between 2017 and 2020, which allowed the resumption of production," he said.


Even Petrobras, the state energy major, is not a fan of the new levy. Speaking on the sidelines of CERAWeek, the company’s Jean Paul Prates said, as quoted by Bloomberg, that this was not a smart way to solve Brazil’s money problems and that Petrobras exports would suffer from it.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News