According to new analysis from IHS Markit, surplus Brazilian oil volumes estimated at 7.4 billion barrels-of-oil-equivalent (BOE) could yield an estimated $210 billion in royalties, government profit share and income taxes by 2050, should the cash-starved Brazilian government choose to auction the excess volumes under production-sharing terms.
These surplus ‘transfer of rights (TOR),’ volumes, which are known to reside in the massive pre-salt* oil fields of the Santos Basin offshore Brazil, are in addition to the five billion BOE from the Santos Basin already under contract to Petrobras through a transfer of rights agreement with the Brazilian government, according to new analysis from IHS Markit (Nasdaq: INFO), the leading global source of critical information and insight. (*Pre-salt oil deposits are located offshore Brazil under deep, thick layers of rock and salt and require substantial investment to extract.)
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