Brazil Government to pay Petrobras USD 9 billion for Oil Contract Revision

Brazilian oil regulator ANP estimates there are around 17 billion barrels of recoverable oil in the area, and the government is seeking to auction rights for the exploration of the excess oil.

By Richard Mann, Contributing Reporter

RIO DE JANEIRO, BRAZIL - The Brazilian government reached a landmark deal to pay state-controlled oil company Petróleo Brasileiro SA US$ 9.058 billion for revising a transfer-of-rights oil contract, Energy Minister Bento Albuquerque said on Tuesday.

Albuquerque told reporters after a meeting in Brasilia that the agreement opens the way for the government to auction off the excess oil in the transfer-of-rights area, a giant pre-salt oil reserve off the coast of Rio de Janeiro.

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