October 14, 2013 / 7:37 PM / in 4 years

Brazil appoints head of new state-owned oil company

1 Min Read

BRASILIA, Oct 14 (Reuters) - Brazil on Monday named engineer Oswaldo Pedrosa as president of a new state-owned oil company created to help guide development of the offshore Libra area oil prospect.

The government plans to sell rights to develop the area at an auction on Oct. 21.

Pedrosa will head Pre-Sal Petróleo SA, also known as PPSA, which will receive the government's share of oil produced from the Libra area under a new production-sharing model as well as supervise the winning group's production in the Libra area.

Libra is believed to hold 8 billion to 12 billion barrels of oil, the largest oil area ever discovered in Brazil.

PPSA will have an initial budget of 15 million reais ($6.9 million), Mines and Energy minister Edison Lobão told reporters in Brasilia.

Pedrosa worked for 30 years at state-run oil giant Petroleo Brasileira SA, known as Petrobras. Since 2010 he has worked for private oil and gas exploration company HRT Participações em Petroleo SA.

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