CNPE Approves Royalty Reduction, Benefiting Over 20 Oil Companies

The Reduction of Royalties Was an Old Demand of the Sector and the Approval by CNPE Was a Cause for Celebration for Representatives of the Oil and Gas Sector

The National Agency of Petroleum, Natural Gas, and Biofuels (ANP) is authorized by CNPE to reduce royalties to the legal minimum of 5% in fields operated by small or medium-sized companies. The council also recommends that the agency carry out studies and actions aimed at defining and implementing any incentives for these companies. Petrobras Reduces Fuel Loss Due to Thefts with the Implementation of the Integrated Pipeline Protection Program

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With the new measure, 24 companies operating in the Brazilian onshore can benefit. Of these, Dommo Energia and Maha Energy are the only offshore companies that would benefit from the measure.

Dommo, Maha, and Potiguar E&P are considered medium-sized companies since they each have at least one concession contract and an annual average production of less than 10,000 barrels of oil per day.

Operator of the Tubarão Martelo field, Dommo Energia produces 5,500 boe/day. The company is in negotiations to sell control to PetroRio.

Maha Energy produces 2,200 barrels of oil daily in the Tartaruga field, in a transition zone in the Sergipe Basin.

Potiguar E&P, a company owned by PetroRecôncavo, produces 4,700 barrels of oil daily in the Potiguar Basin.

With the new measure, in addition to the offshore companies mentioned above, 21 small onshore companies may benefit from the reduction of royalties to 5%.

According to ANP, companies classified as small are those that qualify as operator C and have production of less than 1,000 boe/day of oil or natural gas, both in Brazil and abroad.

The Ministry of Mines and Energy informs through a note: “The resolution also recommends that ANP proceed with studies and actions aimed at defining and implementing potential incentives for exploration, development, and production by small or medium-sized companies and for hydrocarbon accumulations or fields with marginal economics.”

Check Below the 24 Medium and Small Companies That Can Benefit from the Reduction of Royalties

Medium-Sized

• Dommo Energia S.A
• Maha Energy Brasil Ltda
• Potiguar E&P S.A

Small-Sized

• Alvopetro S.A Extraction of Oil and Natural Gas
• Central Resources do Brasil Ltda.
• Energizzi Energias do Brasil Ltda
• EPG Brasil Ltda
• Geopark Brasil Exploration and Production of Oil and Gas Ltda
• Great Energy S.A
• Guto & Cacal – Industry, Commerce, and Services Ltda
• Imetame Energia Ltda
• Leros Petróleo e Gás S.A
• Newo Oil and Gas Ltda. – ME
• Nord Oil and Gas S.A
• Nova Petróleo S.A. – Exploration and Production
• Perícia Engineering and Construction Ltda
• Petroborn Oil and Gas S.A
• Petroil Oil and Gas Ltda
• Petrosynergy Ltda
• Phoenix Oil & Natural Gas Ltda
• Recôncavo E&P S.A
• Santana Exploration and Production of Oil and Gas Ltda
• Ubuntu Engineering and Services Ltda. – ME
• Vipetro Petróleo S.A

by- epbr