IBP defends regulatory changes and a new pre-salt auction in 2016 to reanimate the industry

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  • Posted on December 3, 2015

    Changes must be made to the regulatory environment in order to allow the Brazilian market to be more competitive globally. That is the statement of the president of the Brazilian Oil Institute (IBP) Jorge Camargo, pointing our the importance of changing the pre-salt charter, so Petrobrás is no longer the sole operator. “All it takes are small regulatory adjustments. There is no need to change the sharing regime, just make it that Petrobrás is not the sole operator. We need to simplify local content, and remove the incentive to fine instead of the incentive to conduct projects in the country” says the president, also affirming the need of better environmental licensing, as well as more frequent and regular rounds, in an environment that fosters more invetments. “You don’t need to change the constitution or perform a regulatory U-turn. It’s little adjustments that I have no doubt  would make a pre-salt round next year successful”, he completed.

    In addition, Camargo states that, faced with the major potential of natural gas production in the pre-salt fields, the Brazilian market can distance itself even more from the role of importer of the commodity. The country has good offshore reserves and the necessary qualities to boost its gas industry. However, there needs to be stimuli such as the coordination between electrical energy and exploration area auctions, including pre-salt, as well as changes in duct transportation regulation. New changes, points out the executive, can bring major results for the domestic market. “Brazil is a country still not rich on gas, but we do have resources. Our gas is mostly offshore, which is more expensive than the one produced onshore, but it is abundant and needs to be monetized somehow”.

    Source: Petronotícias

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