Insight
Unitisation process in Brazil creates delays and economic uncertainties
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Report summary
Unitising blocks in Brazil's pre-salt has become a convoluted process. Close to 20 areas, valued by Wood Mackenzie at US$156.8 billion NPV, currently require unitisation. Changes over time to contract regimes, regulations, and local content policies have created delays and lead to uncertain project economics.
Table of contents
- Executive summary
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Regulatory changes create complexities
- List of fields requiring unitisation
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Billions of dollars at stake in unitisation outcomes
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Special Participation Tax (SPT) liabilities are heavily impacted by unitisations
- SPT effects of unitisation on Lula-Iracema and Parque das Baleias
- PPSA carry can have a significant effect on project economics
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Special Participation Tax (SPT) liabilities are heavily impacted by unitisations
- Unitising local content commitments creates web of legal issues
- Conclusion
Tables and charts
This report includes 5 images and tables including:
- Unitisation process in Brazil creates delays and economic uncertainties: Table 1
- Brazil production forecast according to unitisation status
- Concession value when receiving cost reimbursement from upfront PPSA production revenues
- Concession value when receiving cost reimbursement of a maximum 20% of PPSA production revenues
- Unitisation process in Brazil creates delays and economic uncertainties: Table 2
What's included
This report contains:
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