SEATTLE (Oil Monster): State-run oil firm Petrobras is worried about an upcoming change in Brazil's reference oil price that determines some taxes and royalties drillers pay, as it could weaken the economic viability of projects in offshore post-salt fields and in its onshore business, CEO Magda Chambriard said on Monday.
Chambriard added that oil in its post-salt fields is worth less than crude in its pre-salt fields.
Pre-salt oil fields are massive reserves under a hard salt undersea layer. Post-salt are ones above that layer.
Petrobras wants to revitalize oil production in the post-salt fields in northern Rio de Janeiro state, and also onshore, and the change hurts that move, Chambriard said during an interview with local outlet Eixos.
"There is still a lot of oil to be produced, but it needs to be economically viable, so it worries me a lot," Chambriard said.
Oil regulator ANP changed the criteria to set the reference price in a July meeting, after years spent discussing the matter. The move should increase tax collection and also royalties, boosting Brazil's government coffers.
A month before the change was announced, Brazil's Mines and Energy Minister Alexandre Silveira said the change - to take effect September 1 - would bring about 1 billion reais ($184.05 million) in extra money to the federal government by the end of the year.
Courtesy: www.reuters.com
