BRAZIL’S GOVERNMENT-OWNED OIL SALES TO CLIMB SHARPLY, OFFICIAL SAYS

Brazil’s direct sales of crude will more than double this year and rise sharply this decade, as oil majors deliver more of their output to the government under production-sharing agreements, according to a state official. Government-owned volumes, until now nearly irrelevant, are ramping up and will reach 1.127 million barrels per day (bpd) by 2031, according to Eduardo Gerk, head of Pré-Sal Petróleo SA (PPSA), the state-run company that oversees the country’s production-sharing contracts. Brazil produces about 3 million bpd of crude today, with the government stake responding for less than 1% of the total. The government stake is projected to rise to about 20% of the country’s total production in 2031, when total country production is estimated at more than 5 million barrels per day of crude, Gerk said.

Sources: Reuters/Datamar News