Oil & Gas
In 2010, the Brazilian Government and Petrobras entered into an
agreement by means of which Petrobras earned the right to produce
up to five (5) billion barrels of oil equivalent (boe) within the
Pre-Salt Area. The deal was part of a capitalization of the
company.
As Petrobras operations progressed, though, it was found that
there were way more than those 5 billion boe negotiated. After
reaching an agreement with Petrobras to review the original terms
of 2010, the government started preparations for the so-called
Transfer of Rights Surplus Auction, in order to offer that
substantial excess capacity of the reserves to the market. The
auction is expected to be held on October 28.
