June 9, 2020
The decision of the National Energy Policy Council (CNPE) to authorize the National Agency of Petroleum, Natural Gas and Biofuels (ANP) to reduce royalties to the legal minimum of 5% in small or medium-sized company fields, can benefit – if current rules are maintained – 24 companies that operate mainly on the Brazilian onshore. Dommo Energia and Maha Energy would be the only companies operating in the offshore region to benefit from the measure.
The two operators, in addition to Potiguar E&P, are currently classified as medium-sized companies, operators B or C, with at least one concession contract and annualized average production of less than 10,000 barrels of oil equivalent (oil and natural gas) per day .
Dommo Energia, the OGX Group’s estate, currently produces 5,500 boe / day. The company is the operator of the Tubarão Martelo field, currently under negotiation to sell control to PetroRio.
Maha Energy produces 2,200 barrels of oil per day in the Tartaruga field, in a transition zone in the Sergipe Basin – a shallow water region with depths ranging from zero to 50 meters. The field has 30% of its reservoir on the continent and the remaining 70% in water depths up to 20 meters deep, 60 km northeast of the city of Aracaju. The production of the reservoir in the transition zone is made from onshore wells.
Most of Maha’s production, however, comes from the Tiê field, in the Recôncavo Basin, where the company produces more than 3,000 barrels of oil per day.
The largest production among the three companies currently registered as medium-sized is Potiguar E&P, which produces 4,700 barrels of oil per day in the Potiguar Basin. The company belongs to PetroRecôncavo and was born from the acquisition of Polo Riacho da Forquilha, a divestment made by Petrobras in 34 onshore fields in Rio Grande do Norte.
Another 21 small companies – if the criteria are maintained – could benefit from reducing royalties to 5%. Small companies are those that qualify as a C operator and produce less than 1,000 boe / d of oil or natural gas, in the country and abroad.
Petrosynergy, from the Synergy Group of German Eframovich, registers among the companies the highest production in April, according to ANP data, 367 barrels per day of oil.
Central Resources, with production below one barrel per day for the same period, recorded the lowest production among small businesses.
Which companies can benefit from reduced royalties?
“The resolution also recommends the ANP to continue studies and actions aimed at defining and implementing possible incentives for exploration, development and production by small or medium-sized companies and accumulations of hydrocarbons or fields with marginal economics”, commented the Ministry of Mines and Energy in note.