Page 10 - LatAmOil Week 02 2020

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The smaller sum took into account the interest charged on the sale price and the deduction of taxes that Petrobras paid to the government of Nigeria on the sale.
Petrobras has received $1.03bn in dividend payments from Petrovida since January 1, 2018, which has been designated as the starting date of the deal. It collected another $276mn on Janu- ary 14 and will receive another $123mn once the re-determination process for the Agbami field
has been completed. The state-controlled Bra- zilian company is due to receive the remaining $25mn by June 30.
“PO&GBV’s dividend distribution is in line with the strategy of anticipating the asset’s mon- etisation and was possible due to PO&GBV’s operational generation and gross debt increase, which rose from $800mn on December 31, 2017 to $1.825bn on December 31, 2019,” Petrobras said in its statement. ™
Brazil eyes mechanism to reduce impact of high global oil prices
THE Brazilian government is reportedly look- ing into establishing a mechanism that would reduce the potential impact of high interna- tional crude prices on the country’s domestic fuel market.
Energy Minister Bento Albuquerque said last week that Brasilia was considering this approach in the hope of reducing the impact of spikes in global oil prices. “We should be prepared for the future, so Brazil [does] not suffer from some international crisis,” he was quoted as saying by Reuters.
He also noted that the government had been looking into its options on this front for some time. “We were already working for two months on alternative proposals and instruments to avert the effect of increased oil prices,” he was
quoted as saying by Argus Media.
The mechanism might take the form of cre-
ating a fund for windfall oil revenues that the government earns, the minister said.
That would stop fuel prices in Brazil from being pushed up by higher global oil prices, he added.
These revenues could originate from a vari- ety of sources, he said. “We are looking at the royalties, those things that we as oil exporters see as possibilities to accumulate reserves that could compensate for unexpected increases in oil prices,” he said at a press briefing.
Likewise, he said, the money deposited in the fund could be used in multiple ways. “Fuel sub- sidy is not the right word. Compensation may be the right word,” he remarked.`
Brazilian Energy Minister Bento Albuquerque (Photo: Wilson Centre)
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