Pre-Salt Money Will Be Used To Reduce Federal Government Deficit

With The Expected Pre-Salt Resources, The Government’s Debt Could Decrease From R$139 Billion To R$ 87 Billion

Part of the funds from the pre-salt that will be collected by the government at the end of the year (November) will not be spent on anything other than amortizing federal government expenses. In an interview with Folha de S. Paulo, the current secretaries of the Ministry of Economy estimate that the amounts raised will be around R$ 52 billion.

Scheduled by the government, on November 6, the mega auction could provide an injection of over R$ 106 billion into the Union’s coffers, with the payment date before Christmas (2019). The distribution will be as follows:

Recomendado para você

Oil and Gas

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

The Technical Agenda and the Fair in the City of Macaé Should Boost Discussions on Investments, Energy Transition, and Development of the Oil, Gas, and Energy Chain in the National...

Paulo Nogueira

1

• R$ 33.6 billion will go to Petrobras
• States and municipalities will receive R$ 10.5 billion each
• R$ 52 billion for the federal government

According to the Secretary of the National Treasury, Mansueto Almeida, these resources cannot be part of the expenditure estimate in the budget due to these amounts entering almost in the last week of 2019. Waldery Rodrigues Júnior, Special Secretary of Finance said: “This is by far the largest fiscal event of the year. The transfer allows for important relief.” Both attended the event held by the bank BTG Pactual.

The government expects these pre-salt resources to reduce the Union’s debt from R$139 billion to R$ 87 billion, being deducted from the goal of reducing the primary deficit.

About The Pre-Salt Auctions

The government will offer 4 large exploration areas discovered by Petrobras, but these exceed the areas offered to the state-owned company; the operators that acquire these assets will have to be onerous, commonly referred to as “Onerous Assignment“.

According to Firjan, it is expected that over half a million jobs in the Brazilian oil sector will be generated by 2027. Learn more about these metrics, statistics from the institution here.