Brazil Senate approves new oil company

Green light: Brazil Senate approves new oil company for pre-salt oil

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By News Wires

 07 July 2010 22:53 GMT

Brazil's Senate has approved a draft law proposing the creation of a new state-run oil company which will manage the exploration and development of pre-salt oil reserves several miles under the ocean floor.



The new company will be called Pre-Sal Petroleos instead of the previously suggested Petrosal.

Pre-Sal Petroleos will join consortiums that will be created to explore the oilfields, Reuters reported.

The government wants to develop the pre-salt reserves, discovered in 2007, using production sharing contracts with private companies, rather than concessions, but the bill remains stuck in the lower house of Congress.

The bill creating the new state company passed unaltered through the Senate on Thursday, except for the name change, meaning it can now be sent straight to President Luiz Inacio Lula…

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