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Not concerned: Petrobras boss Jose Sergio Gabrielli

'New oil laws won't affect Petrobras'

The Brazilian government's plans to change the nation's oil law will not turn state-controlled oil company Petrobras into an outsourcing producer of crude nor hinder its ability to bid for exploration permits, a local newspaper said today.

Petrobras boss Jose Sergio Gabrielli told Valor that the implementation of production-sharing agreements in the so-called pre-salt deep-water oil reserves will favor the company.

Plans to build five refineries through 2020 will continue even if the changes limit Petrobras' access to sub-salt oil, Reuters quoted Gabrielli as telling Valor.

Asked whether the sharing agreements system will lead to increased corruption, he said the concern was not corruption but "returns on exploratory risk," without elaborating further.

Gabrielli told Valor allowing Petrobras alone to explore for oil in some pre-salt blocks does not violate the nation's political constitution, as claimed by some rivals that "have been left out of the pre-salt."

Gabrielli did not give a timetable or detailed assessment of possible changes to the oil law, saying they are still being analysed by government officials.

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