• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 12 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 10 hours Europe: The Cracks Are Beginning To Show
  • 11 hours Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 50 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 11 mins Hong Kong protesters appeal to Trump for support.
  • 1 hour Millennials: A boil on the butt of the work ethic
  • 32 mins A little something for all you Offshore swabbies
  • 7 hours Ban Fracking? What in the World Are Democrats Thinking?
  • 11 hours LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 9 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 2 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 2 hours Shale profitability
  • 10 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 20 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 7 hours Let's shut down dissent like The Conversation in Australia

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
Download on the App Store Get it on Google Play