The Overhaul of the Brazilian Oil and Gas Regime: Does the Adoption of a Production Sharing Agreement Bring Any Advantage Over the Current Modern Concession System?
Article from: OGEL 4 (2010), in Upstream Petroleum Regulation incl. Host Government Contracts
Brazil's sub-salt area became public in November 2007 when Petrobras made one of the most important announcements in its history: the discovery of a large oil reservoir in the Tupi field. Tupi was the first discovery in the sub-salt area which according to estimates could take Brazil to a select group of countries with substantial oil and natural gas reserves. In light of that, the Brazilian government decided to adopt a Production Sharing Agreement with the creation of a special state-owned company to capture a larger share of the prospective revenues from the sub-salt reserves ...