Brazil’s government also plans to cancel exploration rights in areas without production for 180 days, putting them up for a new auction, and to extend for 20 years a special customs regime for oil equipment known as Repetro, the minister told Valor.
Braga said the measures could help trigger up to $130 billion in investments in Brazil’s oil sector, which has been heavily affected by tumbling crude prices and a huge corruption probe at state-controlled producer Petroleo Brasileiro SA and many of its local and foreign suppliers.
Braga said he expected crude oil prices to rise back to $50-$70 a barrel sometime between the fourth quarter of 2016 and the first three months of 2017. Brent crude oil has traded slightly above $30 a barrel recently.
Spokespeople at the energy ministry did not immediately respond to request for comments. (Reporting by Silvio Cascione; Editing by Gareth Jones)
Brazil Energy Insight 
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