Brazil 6

Brazil: Oil Royalties Decision: Uncertainty Remains

The CNPE published two resolutions on 3 May that established directives for altering the reference price of oil, which is a key factor in the ANP’s royalty calculations. In contrast to previous disputes with the ANP, this time the CNPE recognized the competence of the ANP to make final decisions regarding the methodology. One resolution suggested that the physical and chemical properties of different types of oil be taken into account for the sake of regulatory stability and encouraging investments. According to the second decree, a detailed scientific analysis of the composition of oil in each productive field will be made.

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