Regulatory News

The president of the Brazilian Petroleum Institute (IBP), Joao Carlos de Luca said that the industries in the sector are concerned about the uncertainty over the distribution of oil royalties, which will now be decided in court. According to Luca, the lack of rules discourages companies interested in participating in the 11th Bid Round of oil and gas field exploration scheduled for May.

After Congress overturned President Dilma Rousseff’s veto of the bill which established an equal distribution among all states and municipalities, the governments of Rio de Janeiro and Espírito Santo, where more than 80% of national production is concentrated, are preparing to file processes in the Supreme Court challenging the legality of the decision made by the lawmakers.

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