Brazil extends customs perks for oil industry through 2040

(Reuters) – Brazil on Friday extended through 2040 a preferential customs regime for the oil and gas industry called Repetro, which was set to expire in 2019, as it seeks to entice investment ahead of key auctions later this year.

The move was accompanied by another decree creating a special tax regime to bolster local suppliers for the oil and gas sector.

The Repetro system, which was put in place in 2009, suspends the payment of federal taxes on imports and exports of goods used in research and mining of oil and natural gas deposits.

The extension is a boon for oil companies ahead of three auctions of oil and gas exploration blocks planned for this year, one for concessions in September and two for pre-salt prospects under sharing schemes in October.

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