Brazil will need to continue making significant oil reforms in 2021 to secure its position as the world’s top destination for oil investments. The Latin country made significant progress last year despite heavy global competition and uncertainty around the coronavirus pandemic.
The country is on its way to launch a new regulatory framework for natural gas. It is reported that the Congress might debate potential changes to the oil production regime in the next next session. The country and the industry are focused on regulatory stability which is important for improvements in regulator processes.
S&P Global Platts Analytics said in a report “If these transactions are concluded, Brazil’s refining landscape will be completely re-shaped, moving from a monopoly controlled by Petrobras to an open market with potentially multiple new participants. It remains to be seen how many deals are eventually concluded and how each of the new entrants decide to run and maximize the potential of their refining assets.”
As part of recent efforts, Petrobras is looking to sell eight of its refineries. It has already completed negotiations with Abu Dhabi ‘s Mubadala Investment to sell Refinaria Landulpho Alves in Bahia state, media reports said. That said, Petrobras is also planning to shed more than 100 legacy onshore and offshore fields. It is reported that the sale will create a profound market for small and medium enterprises that are focused on foraying into mature markets.