Brazil authorizes agency to reduce reinjection of natural gas into new oil wells
RIO DE JANEIRO, Aug 26 (Reuters) - Brazil's President Luiz Inacio Lula da Silva on Monday signed a decree authorizing oil regulator ANP to order reductions in the reinjection of natural gas into new oil wells in the country.
The measure, which is designed to lower prices of natural gas in Brazil, will only apply to new oil wells with contracts yet to be signed, Energy Minister Alexandre Silveira told reporters.
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"Existing contracts cannot be revised," said Silveira.
Lowering the price of gas to Brazilian consumers and industry has been a priority during Lula's government.
By reinjecting less gas into oil wells, more could become available to the Brazilian market, but it could also decrease a well's productivity.
(Reporting by Lisandra Paraguassu, Writing by Fabio Teixeira, Editing by Nick Zieminski and Ros Russell)