Insight
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5 Pages

Unitisation process in Brazil creates delays and economic uncertainties


Unitisation process in Brazil creates delays and economic uncertainties

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.

What's included?

This report includes 1 file(s)

  • Unitisation process in Brazil creates delays and economic uncertainties PDF - 300.06 KB 5 Pages, 4 Tables, 1 Figures

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.

  • Executive summary
  • Regulatory changes create complexities
    • List of fields requiring unitisation
  • Billions of dollars at stake in unitisation outcomes
    • 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
  • Unitising local content commitments creates web of legal issues
  • Conclusion

In this report there are 5 tables or charts, including:

  • Executive summary
  • Regulatory changes create complexities
    • Unitisation process in Brazil creates delays and economic uncertainties: Table 1
    • Brazil production forecast according to unitisation status
  • Billions of dollars at stake in unitisation outcomes
    • Unitisation process in Brazil creates delays and economic uncertainties: Table 2
    • 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
  • Unitising local content commitments creates web of legal issues
  • Conclusion
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