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The Redistribution of Oil Royalties in Rio de Janeiro Mobilizes Mayors, Allies of the State Government, and the Supreme Federal Court, with Billion-Dollar Impact on Municipal Finances and Direct Reflections on the Electoral Scenario.
The division of oil royalties has returned to the center of political debate in Rio de Janeiro and has begun to directly influence electoral arrangements and regional alliances. As the October elections approach, mayors of large municipalities in the Metropolitan Region and allies of the Guanabara Palace are intensifying movements around the redistribution of these resources, which amount to billions of reais per year.
The issue is under analysis by the Supreme Federal Court (STF), following the receipt, in December, of a proposal that expands the share of royalties allocated to São Gonçalo, Magé, and Guapimirim. The three cities are governed by allies of Governor Cláudio Castro (PL) and advocate for changes in the current distribution criteria.
Paes’ Change of Position Alters the Balance of the Dispute
One of the most emblematic moves in this process came from the mayor of Rio de Janeiro, Eduardo Paes (PSD). Considered a candidate for the state government, Paes has begun to support the redistribution of oil royalties, even knowing that the capital could lose about R$ 100 million per year in revenues from the Tupi field.
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The shift surprised part of the political sphere, as the municipality of Rio was among the main harmed by the proposal. Nevertheless, the decision was interpreted as a strategic gesture towards the political base of Cláudio Castro, at a moment when alliances could define the outcome of the state election.
The mayor of Maricá, Washington Quaquá (PT), also joined the agreement. Conversely, Niterói, led by Rodrigo Neves (PDT), maintains open resistance to the proposal and warns of potential losses that could reach R$ 1 billion per year.
Electoral Colleges and Political Calculations Weigh on the Negotiation
Paes’ change in posture occurs in a context of rapprochement with São Gonçalo, the third-largest electoral college in the state. The municipality is governed by Captain Nelson (PL), a direct ally of Governor Cláudio Castro. His son, Douglas Ruas (PL), state secretary of Cities, is cited as a possible candidate for governor.
Behind the scenes, Paes’ allies believe that joining the agreement prevents the mayor of Rio from being accused of acting against São Gonçalo during the campaign. Such a narrative could hinder his electoral penetration in the Metropolitan Region and strengthen opponents aligned with the Guanabara Palace.
The Origin of the Dispute Dates Back to Judicial Decisions in 2022
The controversy over oil royalties began in July 2022, when São Gonçalo, Magé, and Guapimirim obtained a preliminary injunction from the Federal Court in Brasília. The decision raised the participation of the three cities in the distribution by including them in the so-called “main production zone” of oil.
As a result, the municipalities would not only receive more royalties but also special participation from the Tupi and Berbigão fields. The action was led by lawyers associated with Nupec, an entity that frequently operates in disputes of this kind.
STJ and STF Blocked the Change, but Negotiation Was Reopened
At that time, Rio de Janeiro, Niterói, and Maricá appealed to the Superior Court of Justice (STJ), which overturned the preliminary injunction still in 2022. The original division was maintained, a decision subsequently confirmed by the STF in September of last year.
Consequently, Maricá and Niterói continued to lead the national ranking of special oil participations. Since the end of 2024, Maricá received about R$ 1.4 billion, while Niterói accumulated approximately R$ 1.2 billion. Rio de Janeiro ranked third, with R$ 223 million in the same period, according to data from the National Agency of Petroleum (ANP).
Despite this judicial history, the political negotiation was resumed. In December, Paes accepted the same redistribution model proposed in 2022, reigniting the dispute.
Financial Impact Varies Drastically Among Municipalities
If the new agreement is ratified, the losses and gains will be significant. Niterói is considered the most harmed city, with an estimated reduction of around R$ 800 million per year. In calculations presented in 2022, the city hall estimated losses of up to R$ 996 million annually.
Maricá, in turn, could lose approximately R$ 700 million. The capital could face an annual reduction of around R$ 100 million. In contrast, São Gonçalo, Magé, and Guapimirim would significantly increase their revenues from oil royalties.
Political Connections and Advocacy Come to the Fore
The role of Nupec in the dispute has also drawn attention. The firm representing São Gonçalo, Magé, and Guapimirim at the STF includes lawyers Antonio Ricardo Binato de Castro Filho and Hercílio José Binato de Castro. Both are, respectively, brother and cousin of Tatiana Loureiro Binato de Castro.
Tatiana is married to the state secretary of Civil Affairs, Nicola Miccione, a name close to Governor Cláudio Castro. Although the state government is not formally a party to the actions, the political connections reinforce the strategic weight of the issue.
Miccione is even cited as a possible name to assume a temporary mandate in the state government if Castro resigns to run for the Senate. In this scenario, he could directly influence the electoral process and the discussions around oil royalties.
Arguments of Regional Solidarity Support the Agreement
In defending the redistribution, Eduardo Paes stated that he acts out of “solidarity and empathy” with neighboring municipalities. In a letter sent to the STF on the 19th, the mayor requested the “swift ratification of the agreement” made between Rio, Maricá, and the three benefited cities.
Washington Quaquá reinforced the argument of regional balance. According to him, São Gonçalo, being the largest municipality in the region, suffers excessive pressure on its public services. “São Gonçalo puts pressure on the health, education, and social policy services of Maricá due to the budgetary constraints it faces,” he stated.
Niterói Reacts and Questions the Legality of the Agreement
The Niterói municipal government has adopted a strong stance against the understanding. In a petition filed at the end of December, the municipality argued that the division of oil royalties cannot result from “political consensus among mayors,” but must obey technical criteria defined in federal law.
Furthermore, the municipality argued that the agreement imposes an unavoidable reduction in revenues without Niterói’s consent, violating constitutional principles and the regulatory framework of oil.
In a statement, the municipality declared its support for the creation of a solidarity development fund, funded with oil resources, but without compromising existing legal criteria.
Million-Dollar Fees Amplify Controversy
Another sensitive point involves the attorney fees paid during the period in which the 2022 injunction was in effect. In that month of August, São Gonçalo received R$ 219 million in special participations and paid R$ 43 million to Nupec, equivalent to 20% of the amount, as provided in the contract.
Magé and Guapimirim also received significant amounts, R$ 186 million and R$ 121 million, respectively. An audit by the State Court of Accounts (TCE-RJ) pointed out that the entity immediately charged R$ 37 million from Magé and R$ 24 million from Guapimirim as attorney fees.
STF Analyzes the Agreement and Requests Technical Opinions
The request from the municipalities in favor of redistribution is that the new distribution takes effect immediately. However, the STF has not yet ruled. The case’s rapporteur, Minister Alexandre de Moraes, requested technical opinions from the IBGE and ANP before any decision.
Meanwhile, the struggle for oil royalties continues to shape alliances, strain relations between municipalities, and influence electoral strategies. The legal outcome could redefine not only the flow of billions of reais but also the political balance in the state of Rio de Janeiro.
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