Brazilian oil giant Petrobras could get a $14 billion settlement from the government, following a long running dispute over the number of oil fields it has the right to develop.
In 2010, Petrobras was assigned the transfer-of-rights to extract 5 billion barrels of oil and gas based on prices at the time, although the costs were reviewed in 2014 when fields became financially viable.
The dispute centred around both parties claiming to be owed billions of US dollars, with the state oil firm disputing estimates of the reserves in the area, made by the country’s oil regulator ANP.
During the state-run company’s own exploration of the region, off Brazil’s coast, it found significantly higher levels of oil that first indicated – 5 billion more barrels than it was initially entitled to produce in 2010.
However, Petrobras how now suggested it has found an end to the dispute and will begin looking for partners to develop the fields, once an audit court has approved the settlement, which both the company and government need to agree to the terms of.