قالب وردپرس درنا توس
Home / World / Brazil's far-right candidate could review presalt oil contracts: report

Brazil's far-right candidate could review presalt oil contracts: report



RIO DE JANEIRO (Reuters) – Brazil's far-right presidential candidate Jair Bolsonaro could change the model of division of production in his coveted Vorsalz fields if he wins this month's election, the newspaper Valor reported Monday.

Presidential candidate Jair Bolsonaro attends a press conference in Rio de Janeiro, Brazil on October 1

1, 2018. REUTERS / Ricardo Moraes

The pollster before the runoff election on 28 October could also end foreign financing through state development Bank BNDES, reported Valor, cited unnamed campaign sources as Bolsonaro wants to revise the country's state entities.

Bolsonaro, a longtime proponent of state control over key strategic assets such as the state-owned Petroleo Brasileiro SA and Centrais Eletricas Brasileiras SA, has recently changed course and more closely tied to key advisers who advocate asset privatization.

But a rival stockpile of military-grade advisors has urged Bolsonaro to retain control of Petrobras and other strategic assets, Reuters reported last week, opening a split that could disappoint investors, the Petrobras. Stocks recorded the upswing of Bolsonaro in the first round.

Bolsonaro's campaign did not immediately respond to a request for comment.

Petrobras shares rose 2.2 percent in late trading.

Bolsonaro held his own in a second round of elections far behind his left rival, Fernando Haddad, who tested voters' intentions for the run-off election, which was released on Monday. The Ibope survey found that Bolsonaro received 59 percent of voter support, compared to Haddad's 41 percent.

Brazil's plan to divide production into its oilfields prior to salt production was rolled out by the Leftist Labor Party, which ran 13 of Brazil's last 15 years, and blamed by many for a weak economy and endemic transplantation.

Reformed by the center-right government of Michel Temer, who took office in 2016 following the impeachment of ex-president Dilma Rousseff, the model of distribution of production has proven successful in recent auctions, attracting oil companies like the one Exxon Mobile Corp. Chevron Corp, Repsol SA, Royal Dutch Shell Plc and BP Plc.

Higher oil prices and the need to replace shrinking reserves have fueled oil companies' appetite for more expensive offshore projects and pumped much-needed money into Brazilian coffers.

The Valor article gave no details of how Bolsonaro would optimize the co-production model, but cited electoral sources saying the goal was to attack some of the political abuses of earlier governments.

Under Rousseff, the Brazilian government used the BNDES to offer loans to countries such as Venezuela, Cuba and Mozambique, which they would use for Brazilian companies.

The Brazilian government under Rousseff had agreed to act as guarantor for the loans. The funds were used by Venezuela and Mozambique to pay for the work of Brazilian companies.

In May, Brazil said it would continue to insist that Venezuela and Mozambique repay nearly $ 1 billion in reais ($ 281.05 million) of loans they lent to BNDES and Swiss Credit Suisse.

Reporting by Gabriel Stargardter; Edited by Marguerita Choy

Our Standards: The Thomson Reuters Trust Principles.

Source link