Brazil's new oil revenue law goes into effect
SAO PAULO (AP) -- A new oil law that gives a greater share of royalty revenues from Brazil's vast oil fields to non-producing states has gone into effect. Producing states say they will file appeals with the Supreme Court.
The law was signed by President Dilma Rousseff Thursday night and published in the official gazette on Friday.
The new law distributes oil royalties, from existing and future drilling and production concessions, more evenly among all of Brazil's 27 states instead of favoring top oil producers such as Rio de Janeiro, Espirito Santo and Sao Paulo states.
Officials in Rio de Janeiro, the largest producing state, have said the law will deprive Rio of $1.7 billion in 2013 alone, endangering preparations for the 2014 World Cup and the 2016 Olympics.