Brazil is to amend its legislation regarding the unitization of oilfields in order to provide a stimulus package for the industry to withstand the global oil prices decline, reported Reuters. The current laws are allegedly complicating such unitization – the process of joining different or competing oil rights in an oilfield into a single unit. As a result, the country has seen delays in the development of the country’s 10b barrels of oil and gas and investments of about $120b, according to Brazil’s oil industry association IBP, wrote Business Recorder. The government is currently considering a variety of stimulus plans to revive the country’s oil industry, however, tax exemptions or subsidies were not among them.
Meanwhile, Brazil’s Petroleo Brasileiro SA, Petrobras, a state-controlled oil company, is reportedly selling its stake in the Brazilian petrochemical company Braskem SA worth $892m in line with its divestment plan in light of the corruption scandal, the Latin Post reported. The sale is expected to be finalized by the end of Q2. The company, whose stocks are seeing a decade low, according to Bloomberg, is to sell its remaining assets of up to $15.1b by the end of the year in order to be able to re-pay its $130b debt