Development of Brazil’s new oil fields, located beneath a thick layer of salt on the ocean’s floor, could make Brazil one of the top ten oil exporters in the world and will cost roughly $400 billion.
The Chamber of Deputies, Brazil’s lower house of Congress, approved a bill late last night that would change the existing concessions system to a production-sharing model, requiring that state-run oil company Petrobras operate and hold a minimum 30 percent stake in all new projects in the new offshore province.
The bill, which establishes how oil revenue will be divided between the federal, state and local governments, is the second of four bills designed to overhaul the country’s oil legislation and give the government greater control over the new reserves.
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