Brazilian Legislature Backs Oil Royalties Reform

Both chambers of Brazil’s legislature have now passed a reform that allocates drilling royalties from newly discovered oilfields to education and healthcare. The bill that allots 75 percent of royalties the government receives from the “pre-salt” layer — the oil and gas beneath the water, rock and salt off the Brazilian coast — to education. Twenty-five percent will go to healthcare.

Brazilian President Dilma Rousseff proposed these changes and is set to sign the bill, as part of a series of proposed moves to offset widespread unrest and dissatisfaction in the country.

The Senate passed the measure last month. Once signed into law, it will come into effect in 2014.

Source: BBC News. Read More »

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