Chuck
09-01-2009, 04:37 PM
http://www.cleanmpg.com/photos/data/2/Brazil_Flag.jpgLula wants to make Brazilians along with oil companies benefit (http://blogs.wsj.com/environmentalcapital/2009/08/31/independence-day-brazil-maps-new-rules-for-offshore-oil/)
http://www.cleanmpg.com/photos/data/501/GOM_Oil_Rig1.jpgKeith Johnson - WSJ (http://blogs.wsj.com) - Aug 31, 2009
One one hand, Brazil should profit from the offshore oil, but will they ask too much? --Ed.
Brazil announced today new rules to protect the country’s expected oil windfall. The big question is whether the long-awaited shift really strengthens Brazil and state-owned Petrobras, or whether it backfires by scaring off investment by international oil companies
The new rules, in the works for a year, change the terms for Brazil’s massive offshore oil fields to production-sharing agreements, rather than outright concessions. (More here (http://www.bloomberg.com/apps/news?pid=20601072&sid=a2n2iQg4LSLM) and here (http://www.reuters.com/article/marketsNews/idUSN3133403520090831).)
This means that if oil prices soar, as some expect, most of the windfall would accrue to the Brazilian government not the oil companies. (Oil wasn’t doing any soaring today, plummeting below $70 a barrel.)....http://blogs.wsj.com/environmentalcapital/2009/08/31/independence-day-brazil-maps-new-rules-for-offshore-oil/
http://www.cleanmpg.com/photos/data/501/GOM_Oil_Rig1.jpgKeith Johnson - WSJ (http://blogs.wsj.com) - Aug 31, 2009
One one hand, Brazil should profit from the offshore oil, but will they ask too much? --Ed.
Brazil announced today new rules to protect the country’s expected oil windfall. The big question is whether the long-awaited shift really strengthens Brazil and state-owned Petrobras, or whether it backfires by scaring off investment by international oil companies
The new rules, in the works for a year, change the terms for Brazil’s massive offshore oil fields to production-sharing agreements, rather than outright concessions. (More here (http://www.bloomberg.com/apps/news?pid=20601072&sid=a2n2iQg4LSLM) and here (http://www.reuters.com/article/marketsNews/idUSN3133403520090831).)
This means that if oil prices soar, as some expect, most of the windfall would accrue to the Brazilian government not the oil companies. (Oil wasn’t doing any soaring today, plummeting below $70 a barrel.)....http://blogs.wsj.com/environmentalcapital/2009/08/31/independence-day-brazil-maps-new-rules-for-offshore-oil/