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New oil model could 'burden' Petrobras

Brazilian energy giant Petrobras could find its position as sole operator of the country's recently discovered oil discoveries a "burden," the president of the Brazilian Petroleum Institute (IBP) said today.

IBP President Joao Carlos De Luca said that recent proposed changes to the country's oil laws may be unconstitutional and that Brazil needs the help of private industry to develop the offshore oil patch.

"I don't think the new regulatory model will be good for Petrobras because there's a sense of burden and the company will be obligated to operate less-profitable fields," De Luca said.

De Luca made the comments during an event sponsored by the local Estado news agency in Sao Paulo, Dow Jones reported.

Under the proposed changes, Petrobras was made the lead operator of the pre-salt oilfields.

The changes also could have a chilling effect on the private sector, De Luca added.

"A single operator limits development of the oil industry too much," the trade group president said.

The IBP is pushing for changes to the proposals, opening space for participation by private oil companies.

The trade group would like to see private companies with a participation of between 15% and 20% in pre-salt development, De Luca said.

De Luca also criticised the creation of Petro-Sal, a new state oil company that will manage the government's stake in the new oilfields.

Petro-Sal will have seats on all operating committees, as well as veto power on development decisions.

"We run the risk of having to work to explore wells, build platforms and at the key moment, not being able to make any concrete decisions," De Luca said.

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