FOREX TradingCharts.com

Financial News: PETROBRAS: Regulator Overestimated 'transfer Of Rights' Ar

PETROBRAS: Regulator Overestimated 'transfer Of Rights' Area Oil Surplus

11/06/2017 - 17:15:00 (RTTNews)

(RTTNews) - The Brazilian government overestimated the oil surplus available at the so-called "transfer of rights" area, where Petrobras has the right to extract 5 billion oil barrels, the company said in a statement.

Determining the size of the reserves is the first step for both the oil company and the Brazilian government to solve a financial dispute regarding the "transfer of rights" deal.

The "transfer of rights" is a system that has given Petrobras the right to explore and produce up to 5 billion barrels of oil and gas in the Brazilian pre-salt layer in exchange for a company reimbursement to the federal government.

Contract values, however, are being revised, as oil prices fell from almost US$ 100 to about US$ 50 a barrel since the signing of the agreement. Petrobras argues that the government should pay the company to make up for the difference.

Analysts say that one way the Brazilian government could solve the dispute would be to pay Petrobras with extra oil from the "transfer of rights" area. However, the government is currently fighting against one of its worst fiscal deficits in history and might also be interested in auctioning the surplus oil reserves.

The Brazilian oil market regulator (ANP) published on Friday estimates for the oil surplus in the "transfer of rights" area. The data, compiled by Gaffney, Cline e Associates, says that there is a 90% chance of the field holding 6.068 billion barrels of oil equivalent (boe). That comes on top of the 5 billion boe already assigned to Petrobras.

The company, however, said in a statement that "based on the great data volume" it has on the "transfer of rights" area, it built a separate set of surplus estimates with "lower statistical limits" than those published by ANP.

The oil company added that "the existence of oil surpluses in the transfer of rights area is an opportunity to both government and company to achieve a deal" and that it will publish a report from DeGolyer and MacNaughton on that matter in approximately 30 days.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2017 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


France Unemployment Rises Slightly In October (11 min(s), 42 sec(s) ago)
(RTTNews) - French unemployment increased slightly in October, data from the Labour Ministry revea ...Full Story»

Cash Remains Preferred Payment Option In Eurozone: ECB Study (54 min(s), 18 sec(s) ago)
(RTTNews) - Euro zone consumers still prefer cash to other options for paying for their purchases, ...Full Story»

ECB's Coeure Warns Against Fake Data (36 min(s), 18 sec(s) ago)
(RTTNews) - Fake statistics are equally threatening to the euro area economy as fake news is to po ...Full Story»

Eurozone Economy Set To Extend Surprisingly Positive Run In 2018 (25 min(s), 18 sec(s) ago)
(RTTNews) - As the outlook for consumption is improving, the Eurozone economy is on its way to ext ...Full Story»

Swiss Industrial Production Expands In Q3 (45 min(s), 18 sec(s) ago)
(RTTNews) - Switzerland's industrial production and turnover increased notably in the third qu ...Full Story»

UK Mortgage Approvals At 13-Month Low (36 min(s), 18 sec(s) ago)
(RTTNews) - UK mortgage approvals declined to a 13-month low in October, data from UK Finance show ...Full Story»

German Business Confidence At Record High (37 min(s), 18 sec(s) ago)
(RTTNews) - Germany's business confidence strengthened to a new record in November on optimist ...Full Story»

Turkey Capacity Utilization Rises; Business Confidence Weakens (12 min(s), 18 sec(s) ago)
(RTTNews) - Turkey's capacity utilization rate increased for the fourth straight month in Nove ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

France Unemployment Rises Slightly In October

11/25/2017 - 00:25 AM (RTTNews)
(RTTNews) - French unemployment increased slightly in October, data from the Labour Ministry revea ...Full Story>>

Cash Remains Preferred Payment Option In Eurozone: ECB Study

11/24/2017 - 09:31 AM (RTTNews)
(RTTNews) - Euro zone consumers still prefer cash to other options for paying for their purchases, ...Full Story>>

ECB's Coeure Warns Against Fake Data

11/24/2017 - 09:13 AM (RTTNews)
(RTTNews) - Fake statistics are equally threatening to the euro area economy as fake news is to po ...Full Story>>

Eurozone Economy Set To Extend Surprisingly Positive Run In 2018

11/24/2017 - 09:02 AM (RTTNews)
(RTTNews) - As the outlook for consumption is improving, the Eurozone economy is on its way to ext ...Full Story>>

Swiss Industrial Production Expands In Q3

11/24/2017 - 07:22 AM (RTTNews)
(RTTNews) - Switzerland's industrial production and turnover increased notably in the third qu ...Full Story>>

Binary Options Articles Courtesy of NADEX

These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.