New Regulatory Model - Brazil // Petrobras CEO rejects the increase of the tax on the pre-salt and post-salt production
September 15, 2011 - by PreSalt.com - Sources: Agencia Brasil
Petrobras (NYSE: PBR / PBR.A) will go to court if the Congress approves the proposal of the governor of Rio de Janeiro, Sergio Cabral, who foresees the increase of the Special Participation, charge that the companies pay to the government based on operating income of each oil field assets with pre-salt and post-salt production. The proposal maintains the current level of collection of royalties to the producing states and municipalities, providing additional revenue to non-producers.
"Petrobras will have to fight it in court, no way. If not, you're making a reckless administration. If you change contracts, it must have to defend it contracts", said the president of Petrobras, José Sergio Gabrielli, who participated in an energy industry event in Rio de Janeiro.
He recalled that the payment of royalties and Special Participation by the oil companies is expected in the Petroleum Law (Law 9.478/97). And that is based on this legislation that the concession contracts were signed. "The concession contracts that exist today paid R$19 billions (US$11.51 billions) in royalties and appearances in 2010 and will arrive in 2020 paying about R$45 billions (US$27.27 billions)".
