Brazil seeks large share in big oil fields-report

Fri Aug 7, 2009 7:48am EDT
SAO PAULO, Aug 7 (Reuters) - Brazil is considering changes to oil legislation that would secure the government large stakes in the biggest fields in the massive sub-salt oil region off the nation's coast, Chief of Staff Dilma Rousseff told Valor Economico in an interview published on Friday.
In 2007 Brazil discovered some 8 billion barrels of crude in the Tupi field, opening a new oil exploration frontier deep below the Atlantic that could hold more than 50 billion barrels.
The government is drafting new oil laws to boost state control over the massive finds, including proposals for the state to impose limits over private companies' participation on the exploration and commercialization of that oil.
The government will decide on a case-by-case basis the percentage of production it wants from each sub-salt field that could be put up for auction, Rousseff told Valor. In the most productive fields the government may hire state-controlled oil company Petrobras (PETR4.SA) as its sole operator, Rousseff said.
"In fields we are certain of the existence of big reserves, we will hire Petrobras directly. In that case, we won't hold an auction," she said.
Petrobras' share in the blocs will be defined by law, Rousseff said, without elaborating. The Brazilian government's share in the fields will, therefore, be allowed to fluctuate partly to open space for private oil companies if necessary, Valor reported.
President Luiz Inacio Lula da Silva has yet to sent new oil legislation to Congress and is still debating with advisors what measures to include. The changes are expected to face stiff resistance from Congress and Energy Minister Edison Lobao this week said even cabinet members had important disagreements. (Reporting by Guillermo Parra-Bernal and Brian Ellsworth; Editing by John Picinich)