Brazil’s lack of clear rules for the unitization of oilfields is delaying the development of as many as 10 billion barrels of oil and gas and about $120 billion of investment, Jorge Camargo, head of Brazil’s oil industry association, IBP, said on Monday.
Unitization, the process of joining different or competing oil rights in an oilfield into a single unit, is required under Brazilian law. But existing regulations have complicated or prevented unitization, stopping development in some areas, Camargo said in a conference call.
Camargo, who met with Brazilian President Dilma Rousseff in Brasilia earlier on Monday, said he is optimistic she plans soon to fix the unitization rules and present a stimulus package for the industry, which is struggling with low prices and a corruption scandal at state-led oil company Petroleo Brasileiro SA.
Brazil Energy Insight 
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