Brazil Court Denies Petrobras Injunction in Tax Dispute
RIO DE JANEIRO - Brazil's second-highest court denied late Thursday a request by state-run oil company Petroleo Brasileiro, or Petrobras, for an injunction in a dispute over tax payments for offshore oil-platform leases.
The ruling temporarily makes Petrobras ineligible to participate in government tenders, including the upcoming auction of Brazil's first presalt oil and natural gas exploration acreage set for Oct. 22 in Rio de Janeiro, because the company now has an outstanding debt with local tax authorities, a court official said. Brazil's new production-sharing regime, however, requires Petrobras to hold a 30% operator stake in the area to be sold.
The outstanding tax obligation also means Petrobras isn't allowed to carry out import or export operations, but Petrobras said Friday it would restore the necessary tax certificate in a "brief amount of time."
Petrobras "assures that there is no risk of disruptions to oil or product supplies or operations," the company said in a statement.
The court ruled that the injunction couldn't be granted before a lower court had ruled on Petrobras's appeal of a tax case brought last year by Brazil's Internal Revenue Service for unpaid taxes between January 1999 and December 2002. The tax authority sanctioned the company for not deducting income taxes for lease payments on offshore oil platforms made to companies operating in countries with more favorable tax rates.
Petrobras said it was taking "all necessary measures" to appeal the decision. In November, Petrobras said that possible losses related to the dispute were estimated at 4.78 billion Brazilian reais ($2.24 billion).
Gerald Jeffris in Brasilia contributed to this report.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Blockchain Demands Attention in Oil and Gas
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- CNPC Opens Sea-Land Oil Storage and Transport Facility in Bangladesh
- Oman Sees Increasing Ship-to-Ship Transfers of Russian Oil Bound for India
- US Govt Makes Record Investment of $6B for Industrial Decarbonization
- Perenco Still Searching for Missing Person After Platform Incident
- Eni, Fincantieri, RINA Ink Deal on Maritime Decarbonization
- Oil Falls as US Inventories Increase
- Czech Utility CEZ Bucks Weaker Prices, Demand to Log Record Annual Profit
- Ithaca Energy Studies Deal for Eni's UK Upstream Assets
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call