Brazil authorizes state company Pre-sal Petroleo SA to sell pre-salt oil and gas
Petroleumworld 12 26 2017
Brazil set out provisional rules on Friday for Pre-sal Petroleo SA, the state company managing contracts to develop the coveted offshore pre-salt layer, to market the government's share of oil and gas from there.
Development of pre-salt, 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 Friday, 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 on Friday 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.
Reporting by Roberto Samora; Editing by Lisa Von Ahn from Reuters.
reuters.com 12 22 2017
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