Brazil/Norway

Competition and stability for oil and gas market

MME/T&B Petroleum
23/11/2016 12:21
Competition and stability for oil and gas market Imagem: Petrobras Agency Visualizações: 292 (0) (0) (0) (0)

The Ministry of Mines and Energy (MME) hosted the seminar "Lessons learned from the Norwegian O & G experience", in partnership with the Norwegian Embassy in Brazil, with the Norwegian-Brazilian Chamber of Commerce and with the Brazilian Institute of Petroleum, Gas and Biofuels (IBP). At the opening of the event, MME interim minister Paulo Pedrosa said that Brazil is going through a very special moment, with the redefinition of its policies, with the reinstitutionalization and end of the interventionist model, which has brought losses to the state.

 

In Pedrosa's assessment, the energy-mineral sector will play a major role in the resumption of growth in the country. He pointed out that the oil and natural gas sector differs from other segments of the industry in Brazil, since it depends less on local economy conditions, since This is a global industry. In this scenario, Pedrosa advocates increasing competitiveness among global players.

 

He believes that the policy of oil and natural gas exploration and production defined by Norway should be an example for Brazil, as the Norwegian market has state and private companies, stimulating competition and creating a safe investment environment.

 

"With the dialogue we are establishing with Norway, we can see a number of opportunities for Brazil, reflect how to create competition and a favorable environment for investments, that investors look at our opportunities and those of other countries and come here, contribute to our development, "said the acting minister.

 

Norwegian Oil and Energy Minister Tord Lien told participants a little of his country's experience with oil and gas exploration and production, dating back more than 50 years. Torn pointed out that the oil industry has a cyclical nature and that it is therefore important that this industry be stable with clear and predictable rules.

 

"The cornerstone of the Norwegian oil and gas philosophy is that we want to use the power of the free market for the good of society as a whole, and as a government we always try to do that. Key elements of oil policy have been firm since 1975 in Norway. This gives the predictability necessary for oil companies who are thinking where to invest their resources and their production capacity, "Lien said.

 

Brazil – Biddings 2017

 

MME's secretary of Petroleum, Natural Gas and Biofuels, Márcio Félix, presented to the participants the current moment of the sector in Brazil, with bidding rounds scheduled for 2017. According to the secretary, negotiations are under way for the extension of the Repetro, an important tax regime for the industry. Also in the final stage of definition are the Local Content rules, within Pedefor, to be valid for the 2017 rounds in the transition phase, to be more elaborated in 2018.

 

Another important point that the Brazilian government is considering at this moment is the Union's oil and natural gas commercialization policy in the Sharing regime. According to Felix, this policy will be defined later this year. In the area of biofuels, Félix highlighted the launch of the RenovaBio, due to take place in December of this year, and also mentioned the "Gas to Grow" initiative, which had its public consultation phase closed recently.

 

"The federal government is working to promote the review of the regulatory environment, to re-institutionalize the sectors. The MME has to play the role of government, with companies and agencies each in its role. These things had been lost in Brazil in recent years, "he said. "The rules should be clear and stable, but they should not be static. They should evolve over time, but without surprises, "Felix concluded.

 

Also attending the opening table of the event was Aud Marit Wiig, Norwegian Ambassador to Brazil; Erik Hannisdal, president of the Norway-Brazil Chamber of Commerce; And Antonio Guimarães, IBP's executive secretary.

 

 

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