Brazil set out provisional rules Dec. 22 for Pre-sal Petroleo SA (PPSA), the state company managing contracts, to develop the coveted offshore presalt layer to market the government’s share of oil and gas.
Development of presalt, where oil is trapped under a layer of salt beneath the ocean floor, is governed by production-sharing contracts that require companies to give so-called profit oil to the government for sale by PPSA.
But before Dec. 22, no rules had been set to dictate how PPSA sells that output, which is the percentage pledged to the government after factoring in costs.
The decree published Dec. 22 allows PPSA to conclude contracts on behalf of the government with trading agents or sell the oil directly, preferably by auction.
The rules take effect immediately but require congressional approval to become permanent.
Recommended Reading
Exxon Shale Exec Details Plans for Pioneer’s Acreage, 4-mile Laterals
2024-05-03 - Exxon Mobil plans to drill longer, more capital efficient wells in the Midland Basin after a major boost from the $60 billion Pioneer Natural Resources acquisition. Data shows that Exxon is a leading operator drilling 4-mile laterals in the Permian’s Delaware Basin.
Infrastructure Company Savage Acquires Houston’s Texon
2024-05-03 - Texon, a midstream service provider, will continue operations under its legacy brand.
Antero Midstream Buys Summit Midstream Assets in $70M Deal
2024-05-03 - The deal by Antero Midstream strengthens Antero Resources’ gathering and compression in Marcellus Shale.
NSTA Offers 31 More Licenses in Latest Licensing Round
2024-05-03 - The leasing round attracted 115 bids from 76 companies vying for 257 blocks and partial blocks in the U.K. Continental Shelf.
Occidental Explores Sale of Permian Assets Worth Over $1B, Sources Say
2024-05-03 - Occidental Petroleum is exploring a sale of assets in the Barilla Draw region of Texas, which is located within the Delaware portion of the Permian Basin.