The form of exploitation of oil in “pre-salt” layer of Brazil is of extreme importance for the future development of Brazil. Many people are out of the debate, not familiar with the proposals. However we will explain below the four bills sent to Congress by the government. They deal with two proposals for exploration that can live together: sharing (first three projects) and the onerous assignment(oil-for-stock swap) (final bill).
PL-5938: creates the sharing system(Sistema de Partilha). It works like this: Petrobras is the only operator, responsible for developing technology, hire staff and maintain priority for acquisition of goods and services in the domestic market. Other companies may have up to 70% participation in the business. If they find oil, they will get a portion to cover the costs (cost oil) and split the profits with the state (profit oil). They will be chosen in bidding system, companies that are willing to offer a higher percentage of profits to the state.
PL-5939: creates Petro-Sal a new state owned company, created to defend the Union’s interest in the business. It will be part of the sharing contracts without participation in the costs and profits, but with voting and veto power on decisions. It will monitor, for example, the correct definition of what is cost, the part that is on the companies, and what is profit, the share split with the state.
PL-5940: Creates the Social Fund, a kind of savings account to where should go to the proceeds to the Union’s resources resulting from the operation of the pre-salt and even other oil sources, which remain under the old system of contracts. The money accumulated there should be aimed at combating poverty, education, culture, health, science and technology and adaptation to climate change.
PL-5941: creating a system of onerous assignment(Oil-For-Stock Swap). If approved, Petrobras will pay certain amount to qualify for the holding of up to 5 billion barrels of oil and natural gas. In this area there is no set bid and the exploration area will be returned to the state after reaching the limit. The amount payable will be determined based on the expected return for Petrobras. This contract is the shorter-term, since it must be closed within one year after the enactment of the law. The same project includes the capitalization of Petrobras, which corresponds to a new issue of shares to be sold with the privilege of the current shareholders, including the Union, should serve as resources for new investments, including the payment of the onerous assignment(Oil-For-Stock Swap).