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| Brazil oil plan |
The pre-salt project aimed by the brazilian government consists in an extraction of oil that lies below shiftting sand and a thick layer of salt deep beneath up to 7.000 meters of water, making it one of the most difficult but greatest operations of oil extraction in the world.
To have a clear idea that what it means, the so called subsalt region, which stretches for hundreds along the the brazilian coast, is believed to hold an estimated minimum of 50 billions barrels of oil.
This project not only will turn Brazil in a big oil exporter but also finance the fight against poverty and deliver spending on education and other social goods.
At the centre of the controversy is already an approved plan to switch from the current concession system to production sharing agreements, PSAs.
In a concession, oil companies are given any oil they produce in return for shouldering exploratory and operational risks and for paying royalties and other fees to the government. Brazil has adopted this system for decades.
In a PSA, the government remains with all oil extracted and oil companies receive a share of it as payment for their services.
Petrobras, brazilian oil company, will take at least 30% of any extraction, will be the leader operator in all of them.
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Posted by Gilda on 2009-10-22 16:14:43 | Rating: | Views: 27
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