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An overbearing government and alleged corruption within the ranks of state-run oil firm Petrobras threaten to undermine Brazil's efforts to become Latin America's oil heavyweight, according to the latest BNamericas Intelligence Series.
The report, titled Outlook: 2015 Signals Broad Shift, says last month's reelection of President Dilma Rousseff has cast fresh doubt on the country's ability to double oil production to 4.2Mb/d by 2020.
"A new Dilma Rousseff regime would indicate another four years of high taxes, strict local content rules, stifling bureaucracy, and corruption and mismanagement within Petrobras," the report said.
"Rousseff has vowed to continue the country's pre-salt expansion, targeting accumulated investments of US$102bn by 2018. But the incumbent leader has shown no desire to alter the current pre-salt model, which limits the participation of private companies in production sharing-agreements with Petrobras," it added.
Foreign players are, however, likely to remain enthusiastic about new opportunities for exploration blocks in South America's largest country, the report said.
Brazil's 13th oil and gas licensing round is due to be held in the first half of next year and there are hopes the next pre-salt auction will be held in 2016.
The full report can be seen here.
BNamericas will host its 11th Southern Cone Energy Summit in Lima, Peru, on November 12-13. Click here to download the agenda.