Royalties issue boils over in Rio

Royalties issue: Conflicts continue on distribution of oil revenue

AFP/Scanpix

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News Wires

 08 March 2013 19:56 GMT

Brazilian oil-producing states retaliated on Friday against multi-billion-dollar cuts made by Congress to their oil royalties with a wave of protests and threats to cut off most of the country's oil output.

The actions threaten to poison relationships between Brazil's states, saddle oil companies with losses and complicate efforts by President Dilma Rousseff to forge political alliances needed to pass legislation in the last 17 months of her term, Reuters reported.

Airports in Campos and Cabo Frio, Brazil, key bases in Rio de Janeiro state for helicopter service to offshore oil platforms in the Campos Basin, were blockaded for up to six hours on Thursday, preventing oil workers from boarding flights to drilling rigs and production platforms, the news wire reported.

The airports are now…

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