April 3, 2019
The government has come to an understanding with Petrobras on the review of the Transfer of Rights Assignment contract and should submit the terms to the Brazilian Court of Audit (TCU) this week.
The economic team came to appreciate that the TCU would not need to endorse the text. Even so, it is a good idea to seek an alignment with the court of accounts for the process.
In a process, the TCU will specifically review the contract. In another, it will evaluate the progress of the surplus auction of the pre-salt area. The government hoped to use the resources to ease the gap in public accounts and boost investments in the oil and gas sector.
Minister Paulo Guedes (Economy) mentioned last week that the details would be announced shortly. According to Valor, the government was able to lower the price to be paid to Petrobras for the revision of the contract – the amount now approaches US $ 10 billion, compared to an earlier projection of US $ 14 billion.
The formal understanding would still have to go through other stages, such as the endorsement of Petrobras’ board of directors.