Agreement Closed: Rio Will Receive 2.5 Billion Reais from the Onerous Grant

The State of Rio de Janeiro Managed to Increase the Amount It Will Receive from the Mega Auction of the Surplus Transfer Set for November This Year, Other States Did Not Have Their Amounts Changed

An agreement among Senate leaders determined, yesterday afternoon (03/09), an agreement that increased the amount to be received by the state of Rio de Janeiro regarding the amounts that will be received with the mega auction of surplus oil marked for November. Meanwhile, Petrobras Finds New Signs of Oil in Sergipe.
Previously, the amount due to the state was R$ 326 million, but it was decided that Rio will receive R$ 2.5 billion, while for the other states the amounts remain unchanged.

The agreement was announced by the President of the Senate, Davi Alcolumbre (DEM-AL), and the amendment was presented by the senators from Rio, Flávio Bolsonaro (PSL), Romário (Podemos), and Arolde de Oliveira (PSC).

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According to the estimate from the federal government, the mega auction is expected to generate R$ 106.5 billion for the federal treasury. R$ 33.6 billion belongs to Petrobras as compensation for the renegotiation of the surplus transfer contract.
The state of Rio de Janeiro will receive 3% because the oil exploration blocks are off the state’s coast, and for the other states and municipalities, it was determined that around R$ 21.8 billion will be divided according to the criteria used for the States Participation Funds (FPE) and Municipal Participation Funds (FPM).

As these old criteria favor less developed areas with lower per capita income, Rio de Janeiro would be disadvantaged in the division.

The portion of the mega auction that will belong to the federal government will be R$ 48.8 billion, an amount that will help reduce public debt.
Municipalities in Rio will share R$ 332.1 million.

What Is the Surplus Transfer

A contract made in 2010 granted Petrobras the right to explore up to five billion barrels of oil through direct contracting, without bidding. In exchange, the company made an upfront payment of R$ 74.8 billion to the government.

As explorations confirmed a larger volume of oil in the region, the excess will now be auctioned with Petrobras expected to receive
around R$ 30 billion because market conditions, such as the price of a barrel of oil, have changed nine years later.

Also Read! Petrobras Sets Record in August and Reaches Total Production of 3 Million Barrels of Oil Per Day!