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Petrobras Fears New Oil Price Formula Could Hurt Brazil Projects
18 Aug
Summary
- Petrobras worried about upcoming change in Brazil's oil price reference
- Change could weaken economic viability of offshore post-salt, onshore projects
- Petrobras CEO says post-salt oil worth less than pre-salt crude
As of August 18, 2025, Petrobras, Brazil's state-run oil company, is worried about an upcoming change in the country's reference oil price that determines some taxes and royalties drillers pay. Petrobras CEO Magda Chambriard says this change could weaken the economic viability of projects in offshore post-salt fields and in the company's onshore business.
Chambriard explained that oil in Petrobras' post-salt fields is worth less than crude in its pre-salt fields, which are massive reserves under a hard salt undersea layer. The company wants to revitalize oil production in the post-salt fields in northern Rio de Janeiro state, as well as onshore, but the price change will hurt those efforts.
"There is still a lot of oil to be produced, but it needs to be economically viable, so it worries me a lot," Chambriard said during an interview. The oil regulator ANP changed the criteria to set the reference price in a July meeting, after years of discussion. This move is expected to increase tax collection and royalties, boosting Brazil's government coffers.
