RIO DE JANEIRO: Brazil is mulling the extension of a special customs regime for the oil industry in a move aimed at maintaining the country’s appeal to major global energy firms, according to three sources with knowledge of the matter.
The so-called Repetro regime, which applies to export and import of goods used in oil production and related research, currently is set to expire in 2019.
“The decision suffered delays but is imminent,” said one of the sources referring to Repetro’s extension. The plan is to extend the special regime for 20 years, the sources said.
The renewal could be confirmed as early as next week, said the first source, who asked not to be named because the decision is not public yet.
A 20-year extension will be made through a presidential decree, a second source said, adding that the global interest shown in this year’s oil auctions has played a part in the decision to renew Repetro.
The government will carry out two rounds of pre-salt oil auctions and one round outside of the pre-salt area between September and October.
Officials have said they expect to attract 8.5 billion reais ($2.6 billion) in investments at those auctions this year.
