Brazil sees large tax revenue from oil concessions
Reuters, Thursday, August 06, 1998 at 22:00
BRASILIA, Aug 6 (Reuters) - Brazil expects to reap 60
billion reais (US$51.5 billion) in taxes over the next 15 to 20
years from the 397 oil concession contracts which were signed
Thursday, the National Petroleum Agency (ANP) said.
ANP Director-General David Zylberztajn told reporters the
contracts represented "a gigantic step" which would put Brazil
firmly on the map in terms of the international oil market.
"According to the first projections, 60 billion reais will
be collected with these contracts for municipalities, states
and the union (Brazil) in the next 15 to 20 years," he said.
Each concession contract is subject to four separate tax
criteria -- a signature bonus, special participation fee,
royalties and an area rental fee.
The Mines and Energy Ministry, ANP and state oil giant
Petrobras (SAO:PETR4) signed the exploration, development and
production contracts Thursday to herald the opening of Brazil's
oil sector to foreign companies.
Last month, Brazil ended 45 years of carefully protected
monopoly over its oil when the ANP moved to free up some of
Petrobras' fields for outside exploitation.
As a result, foreign oil firms will be able to produce oil
in Brazil either through concession contracts for the newly
opened areas or as operators in joint ventures with Petrobras.
Copyright 1998, Reuters News Service |
