02:03 PM EDT, 10/04/2024 (MT Newswires) -- Petrobras (PBR) is close to resolving a tax dispute with Brazil's National Agency of Petroleum, Natural Gas and Biofuels, allowing the state-controlled oil giant to move forward with plans to redevelop the Tupi deep-water field located offshore Brazil in the Santos basin, Bloomberg reported Friday, citing the company's head of exploration and production Sylvia dos Anjos.

The agreement, expected by the end of 2024, would enable Petrobras to drill new wells and conduct seismic research at the Tupi field, the report said.

The tax dispute revolves around whether Tupi is a single field or two separate deposits, impacting tax rates, according to Bloomberg. Petrobras must settle a tax dispute with the regulator before it can extend Tupi's operating contract for an additional 27 years through 2064, it added.

Petrobras is also considering adding a new $4 billion floating production vessel to Tupi to boost output, Sylvia dos Anjos told Bloomberg in an interview.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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