Brazil in the spotlight for Statoil

VP for Institutional Relations of Statoil, Mauro Andrade commented the strategy of the Norwegian company for Brazil a few days ago to journalist Miriam Leitão, from GloboNews. Mr. Andrade said Brazil is a very important part of Statoil’s strategy.

In May, Statoil gained right to explore six oil fields in Espírito Santo basin, four of them as the operator, and always jointly with Petrobras. But of course, it does not mean Statoil will be focusing only in that basis. The Norwegian company is present in other basins already, as Campos, Jequitinhonha and Camamu-Almada, in addition to previous participation in the ES basin. Statoil has, by the way, already made discoveries in areas inside that basin.

Statoil shows interest for the Brazilian Pre-Salt, however the company states they still need to evaluate the new contract model to be implemented during the Libra Field bidding round next October.

Pre-Salt introduces new Production Sharing Contract

Differently from what has been said, the Norwegian model is different from the new proposed production sharing contract. This is based in the fact that Norway has to state-owned companies: Statoil itself, and Petoro, who is the licensee for The State’s Direct Financial Interests (SDFI) in production licences, fields, pipelines and land-based plants. However Norway does not apply PSCs, but instead uses the concession model that Brazil has used so far.

It is important to highlight that PSCs are not better nor worse than concessions, but the different lays in the terms of each contract. It is every country’s decision to implement whichever contract model that suits its tax rules.

Innovation Norway is responsible for promoting the Norwegian industry abroad. Our office in Rio de Janeiro manages Innovation House Rio, our business incubator office, and helps Norwegian companies in their efforts towards the Brazilian market.

Posted in Brazil, Oil & Gas

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