ANP – Contracts increase revenue

November 14, 2019

ANP projects that production in pre-salt fields will help raise revenues to the public coffers by R$ 300 billion a year, setting a new level that will require greater responsibility in the application of resources

The fields auctioned in the TOR and the 6th Pre-Salt Round will help boost the sector’s annual lease to the public coffers, which could reach R$ 300 billion per year by the end of the next decade. In 2018, according to Decio Oddone, Director General of the National Petroleum Agency (ANP), were raised R$ 52 billion.

For Oddone, even with the areas not auctioned in the two events, held last week, there will be a change of level in terms of collection of royalties, special stakes (which focuses on the most productive fields) and income tax. Part of the amounts raised goes to producing states and municipalities, increasing the need to better apply these public resources.

– This is not little. The collection will suffer a shock. It’s a change of level, and that’s whether you bid four or six more blocks or if you bid these areas next year, ”said Oddone. – Total revenue is expected to generate R$ 5.5 trillion over the life of the contracts by 2050. The peak revenue will be between 2030 and 2035.

Data presented by Clarissa Lins, president of IBP, also show the advance in the collection volumes. The sector has collected R$ 1 trillion in the last ten years and the expected for the next decade is R$ 1.3 trillion.

“The volumes are absolutely expressive,” she said.

Oddone pointed out that part of this increase occurs because the pre-salt fields are governed by the sharing scheme, where government participation, depending on the premium obtained during the auction, increases in the production phase:

– With the auctions, the production level change is already contracted for the next decade. We have 60 blocks and areas within the pre-salt polygon and another 40 outside. This guarantees activity, and we expect Brazil to be one of the top five producers in the next decade.

Source: O Globo