• 7 minutes Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 16 minutes Google, Hit With Record $5 billion EU Antitrust fine, To Appeal
  • 23 minutes 67.50 was the low for now, $70 - $76+ back in play
  • 2 days Venezuela, the largest oil reserve in the world, faces deep shortages of motor oil
  • 4 hours Daimler and BMW Will Beat Tesla in EV Race
  • 10 hours Trudeau Shuffles Cabinet, Seeks To Reduce Reliance On U.S.
  • 1 day EU And Japan Sign Historic Free Trade Deal
  • 2 hours Chile Becomes The Latest Country To Commit To 100% Renewables
  • 1 day Where 3 Million Electric Vehicle Batteries Will Go When They Retire?
  • 9 hours Chartist predicting a $1 fall, after WTI drops $10
  • 1 day China’s Technology Sector Takes On Silicon Valley
  • 2 days Germany: We Can No Longer Fully Rely On U.S. White House
  • 2 days Trump-Putin Helsinki Summit And Oil Prices
  • 6 hours Rio Tinto Says $4-Million Goodbye to Coal
  • 2 days Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 2 days Well from $74 we hit 67.xx now what?
Trump’s Ultimate Move To Lower Gasoline Prices

Trump’s Ultimate Move To Lower Gasoline Prices

United States President Donald Trump…

Oil Sector Under Fire In Libyan Corruption Crackdown

Oil Sector Under Fire In Libyan Corruption Crackdown

Libya’s oil sector could be…

Brazil To Give Petrobras Up To 2 Billion Barrels Of Oil To Settle Contract Dispu

Petrobras

The Brazilian government may grant state-run oil firm Petrobras an additional 1 billion-2 billion barrels of oil to settle a long-running dispute over offshore reserves in an offshore area in Brazil’s coveted pre-salt layer, Brazilian business newspaper Valor Economico reported on Tuesday.

The so-called ‘transfer of rights’ area was assigned to Petrobras back in 2010 to extract 5 billion barrels of oil and gas based on the oil prices at the time. The complex provisions of the contract, however, included a review of the costs in the area after it was declared commercially viable in 2014. Both parties—the government and Petrobras—have claimed that they are owed billions of U.S. dollars, and the oil company has also disputed the estimates of the reserves in the area made by the country’s oil regulator, ANP.

Meanwhile, oil prices have slumped since 2014 and have been very volatile, which has further added to the diverging positions of the two sides in the dispute.

The review of the reserves has led to years of disputes, but now, according to Valor Economico, negotiations are expected to conclude by May 17.

At Petrobras’s Q1 results release last week, the company’s chief executive officer Pedro Parente said that Petrobas was making progress in its negotiations with the government over the reserves and costs dispute in the transfer-of-rights area. The parties could be able to reach an agreement by May 17, Reuters quoted Parente as saying last week.

Related: Could This Be The Next Proxy War In The Middle East?

In response to today’s media report, Petrobras said in a statement that “discussions are ongoing between Petrobras’ internal committee, responsible for negotiating the Revision of the Transfer of Rights Agreement, and the Interministerial Commission.”

To date, no final deal on the revision of the agreement has been reached, and the amounts and possible means of payment to Petrobras have not been ironed out, the company said, adding that “Facts deemed material on this subject shall be timely disclosed to the market.”

By Tsvetana Paraskova for 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