Brazil’s Surprise Oil Tax Puts $20 Billion in Investment at Risk

Brazil's temporary tax on oil exports sparks a potential $20 billion investment chill and risks a legal battle with foreign oil companies.

March 18, 2023 . 9:08 AM

1 min read

Brazil imposes temporary tax on oil exports, risking a legal battle with foreign oil companies.
Shell and other foreign oil companies file an injunction against the levy.
The tax could chill $20 billion a year in oil industry investments in Brazil.
The move marks a departure from the accommodating stance toward investors of President Lula's first term.
Foreign companies want to keep operating in Brazil, but the tax could discourage drilling deep-water exploration wells.