Fiscal and Contractual Hurdles for Stablishing Asset Sharing Agreements in Offshore Operations

Abstract

The availability of some processing spare capacity in offshore facilities, during its operational life, is an expected event. At some point in time, it is also expected that some fields may share their assets, in order to enhance its economic value. Asset Sharing Agreements are efficient tools for those purposes. However, taxation and fiscal regime in Brazil does not promote a friendly framework for this initiative. This article aims to discuss some key issues that regulatory agents shall address for adequating Brazilian legal framework to international oil industry standards.