Government wants to improve oil sharing system and stimulate investments

1/3/19

The new Ministry of Mines and Energy (MME) team will focus on improving the oil production sharing system in order to make it more competitive and attract greater ” investments” in the oil and gas sector, said minister Bento Albuquerque during inaugural speech. “We will have lower transaction costs for the Union, more investments and more economic and social returns.”

The idea is that the ministry, along with the National Agency of Petroleum, Natural Gas and Biofuels (ANP), maintain the disclosure of a multiyear calendar of oil auctions.

The minister spoke on other issues such as how to improve the local content policy subsidy and expand the definition of exploitation regimes in the pre-salt areas.

In the natural gas segment, the intention of the MME is to engage in diversification of supply, guarantee transparency and free access to the area of ​​transport and regulation of the free market, with national works.

Nuclear energy

Albuquerque also issued a message in support of continued nuclear power projects in the country. “Brazil can not surrender to prejudice and misinformation, wasting two competitive and rare advantages that we have in the international scenario: the technological domain and the nuclear fuel cycle; and the existence of large reserves of uranium in our territory, “he said in a speech.

The Admiral also called for a “frank debate” with all society, the judiciary, Congress, opinion leaders and the media. “We intend to establish an unarmed and pragmatic dialogue, with society and the market, about this strategic source of the Brazilian energy matrix,” he said.

Albuquerque was responsible for the Brazilian Navy’s nuclear program, which includes the nuclear-powered submarine project.

Electricity

The new minister stressed that he will dedicate himself to combat charges and subsidies that increase the rate of electric energy in Brazil. “In the electric sector, we will be committed to seeking the reduction of charges and subsidies that now represent a significant portion of the price of energy for the final consumer,” he said in a speech at the charge transmission ceremony.

Mineral production

Albuquerque also defended the development of the mineral production chain in order to stimulate the aggregation of value to the products. He said he intends to put into practice the definitions of the new legal framework of the mineral sector, which included the creation of a regulatory body. “In this sector, we are committed to implementing the new institutional arrangement, contributing to the structuring of the newly created National Agency and Mining [ANM],” he said.

In his speech, the admiral stressed that the actions of the ministry in the mineral sector will be guided by legal security in order to attract more investment. According to him, the sector policy formulation will also consider the interest in realizing the use of mineral residues and promoting soil research, which includes geological mapping.

Another concern expressed by the new minister involves the management of environmental impacts. Albuquerque advocated the creation of specific legislation, in partnership with states.

Source: Valor

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