Oil auctions could exceed R$ 3.5 billion, projects ANP

03/23/2017

The director of the National Petroleum Agency (ANP), Décio Oddone, believes that government revenue from this year’s auctions may exceed the initial forecast of R $ 3.5 billion. The calculation takes into account the signing bonus payment estimates for the assets of the 15th round of exploratory block concessions next week and the 4th round of pre-salt sharing in June.

“I am showing more optimism with this number [of R $ 3.5 billion], depending on what we have followed developments in the interest of companies, based on the number of companies registered. We tend more to a conservative scenario, but I believe the collection of the 15th and 4th round of joint share has the potential to exceed the R $ 3.5 billion we had announced, “he said, after attending a congress sponsored by the Ibero-American Association of Liquefied Petroleum Gas in Rio.

According to him, the interest shown by the oil companies in the auctions in the Gulf of Mexico in recent months is a positive sign for the Brazilian round of next week. Oddone believes that this week’s Mexico and US auctions show a recovery trend in exploration investments by the oil industry, following the cost-cutting drive started by companies starting in 2014, when prices have begun to fall.

Asked if the uncertainties about the approval of the renewal of Repetro (special customs regime for the oil and gas sector) in the Rio Legislative Assembly may affect interest in the auction, Oddone said he expected the state to prioritize “the highest possible taxation without be too regressive in order to inhibit investments. ”

“It is important for Rio to have competitiveness to attract investment,” said the director, noting that production in the Campos Basin is declining and that it is important for the State to attract investment in technology to recover mature areas.

By decree of the state government, Rio de Janeiro adhered to the Repetro, whose term was extended until 2040. A draft state law, pending before the assembly, however, provides that the special regime be applied only to the area of ​​exploration – change would imply, in practice, collection of taxes on the importation of equipment in the production activity.

 

Source: Valor | André Ramalho