The ANP’s resolution to grant incentives to reduce the rate of royalties on incremental production in mature fields will increase the recovery factor and the useful life of these fields, said director of the ANP Dirceu Amorelli, who participated in the event “Rate of Royalties in Mature Fields” in Rio de Janeiro.
According to the director, the reduction in the royalty rate is necessary because, for investments to extend the useful life of mature fields, companies need to make sure they have a positive return. “In order to receive the incentive, the operator will have to present a development plan proving that it will make investments necessary for incremental production, with benefits for the Union, states and municipalities.”
The draft resolution on the subject is in public consultation until 1/6, and the public hearing on the subject will take place on 29/6. The proposal foresees that the reduction of the royalty rate will only affect incremental production in mature fields, that is, production that exceeds that forecast in the reference curve of the field.
The objective is to foster activities in mature fields, leveraging short-term investments. For purposes of resolution, mature fields are those that have 25 years or more of production and / or have a production of 70% or more of the proved reserves (called 1P reserves).
“The resolution will be clearer as society’s participation in the consultation and public hearing increases,” said the director. He also reminded that this measure will allow the continuity of activities in these fields, which will result in the generation of investments, royalties of jobs.
Source: TN Oil