Harmony Through Conflict: Government, NOC and IOCs in the Brazilian Production Sharing Contract
Article from: OGEL 4 (2013), in Joint Operating Agreements & National Oil Companies: Challenges and Dynamics
The new Brazilian framework for exploration of oil and gas may prescribe the trends for the oil industry in the coming years. This paper will examine the key innovations brought by the PSC to governance issues, emphasizing the different roles played by public and private actors, as well as the special position that the National Oil Company - Petrobras will exercise as sole operator and owner of 30% of the bid winning consortium. As a solution to governance problems the contract establishes a complex system of controls through audits, supervision and OpCom pass marks. The paper ...