Brazil expects to raise $116 billion in 10 years with oil produced in subsalt area

(Reuters) – A Brazil’s state-controlled company that manages the government share of oil produced in the subsalt areas estimates the government will raise $116 billion selling oil through 2031.

State-controlled PPSA CEO Eduardo Gerk estimates production of 8.2 billion barrels under the so-called production sharing contracts over the next 10 years, of which 1.5 billion barrels will be owed to the Brazilian government.

PPSA estimates the volume of oil output in production sharing agreements to reach 3.5 million barrels per day in 2031. These contracts will generate around $92 billion in royalties and $77 billion in taxes through 2031.

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