Business News Americas: PT lawmaker wants to probe Shell, nationalize reserves – Brazil: “Luciano Zica said workers at federal oil company Petrobras (NYSE: PBR) have accused Shell of not declaring to government authorities part of the oil produced at the Bijupira-Salema field in the Campos basin.”: Saturday 8 October 2005
(BNamericas.com) - A left-wing congressman in Brazil's ruling Workers Party (PT) wants to probe the oil production operations of Anglo-Dutch oil company Shell and is proposing a bill to return ownership of all oil and gas reserves in the country to the government, newspaper Valor Economico reported.
Luciano Zica said workers at federal oil company Petrobras (NYSE: PBR) have accused Shell of not declaring to government authorities part of the oil produced at the Bijupira-Salema field in the Campos basin.
The company, which is the field's operator with an 80% interest, has declared output at 60,000 barrels a day (b/d), but Zica received information that support vessel movement around the field indicates higher production, the paper reported. Production could be as high a 100,000b/d in the field in which Petrobras has 20% interest with the difference between the actual production and the declared production allegedly being exported illegally, Zica said.
Zica said he would solicit information from national hydrocarbons regulator ANP about the field.
The paper, however, quoted Petrobras E&P director Guilherme Estrella as saying it is unlikely that Shell is withholding information because electric measuring devices monitor output automatically at the wells.
NATIONALIZATION OF RESERVES Zica is also the author of a constitutional amendment that would hand back to the government all oil and gas, mineral and water reserves in the country. This means that oil companies, including Petrobras, would have to change existing concession contracts to services contract.
The idea is to give the state control of oil reserves and bar export of oil and gas. The amendment has obtained support from 198 lower house congressmen, making it possible for the proposal to be discussed in congress, the paper reported.
Zica, however, called for a nationwide debate on the issue.
Such political posturing has led Zica to seek support from other lawmakers to postpone the seventh hydrocarbon explorations licensing round scheduled for October 17-19.
Brazil's oil and gas industries have been open to private and foreign investments since 1997, giving companies the right to explore, produce and trade oil and gas in the country. - (BNamericas.com)
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