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Alagoas Economy Will Benefit From R$ 1.71 Billion in Oil Royalties Over the Next 5 Years, Says ANP

Written by Ruth Rodrigues
Published on 05/12/2022 at 12:08
Updated on 05/12/2022 at 13:45
A ANP estima que os próximos 5 anos serão essenciais para a arrecadação de royalties de petróleo na região. O estado de Alagoas terá uma injeção de mais de R$ 1,71 bilhão na sua economia durante esse período.
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ANP Estimates That The Next 5 Years Will Be Essential For Oil Royalty Collection In The Region. The State Of Alagoas Will Have An Injection Of Over R$ 1.71 Billion Into Its Economy During This Period.

The National Agency for Petroleum (ANP) forecasts for the future of Alagoas’ economy are quite optimistic this Monday, (12/05). The agency announced the projection of a strong collection of oil royalties of about R$ 1.71 billion for the next 5 years in the northeastern state. The fuel-producing municipalities will keep about 80% of the total revenue, which will be allocated to public investments and socioeconomic development.

Oil Market In Alagoas Will Enable The Collection Of R$ 1.71 Billion In Royalties Over The Next 5 Years, ANP Predicts

The national oil market continues to be one of the most profitable for the economies of Brazilian states, especially regarding collections for public investments.

In the Alagoas region, which has been expanding this sector in recent years, the benefits may be reaped soon.

According to the ANP, the state could achieve a collection of oil royalties of about R$ 1.71 billion over the next 5 years.

Royalties are payments made to the state and the municipalities of Alagoas resulting from the exploration of oil and natural gas, applied to investments for socioeconomic improvements in the region, such as infrastructure works.

The ANP’s forecasts still show that the producing municipalities of the resource will keep a share of 80% of this total amount in their economy.

The growth of the oil sector in the region can already be observed in the year 2022. According to the agency, the state and municipalities will receive R$ 324.5 million — of which R$ 46.5 million will go to the State Executive, and R$ 278 million to the municipalities producing the fuel.

Agency Projects 9.7% Growth In Oil Royalty Collection In Alagoas During The Year 2026

To estimate the transfer of royalties, the ANP considered the average dollar value at R$ 515, and the price of the barrel —Brent— in the international market at US$ 102.13 this year, and an average of US$ 95.33 for the next four subsequent years.

Thus, the agency was able to make strong forecasts regarding the stability of revenue collection in the state by the end of the next 5 years.

According to the organization, the state will experience a growth of 9.7% in royalty collection during the year 2026, reaching about R$ 356.3 million.

This year, 2022, the municipalities that will benefit the most economically from the collection will be Pilar, with a transfer of R$ 18 million, São Miguel dos Campos (R$ 16.1 million), Coruripe (R$ 12.7 million), Marechal Deodoro (R$ 12.4 million), and Maceió (R$ 11.7 million).

Regarding the national oil market, the collection of royalties and resulting economic benefits are even greater.

ANP projects that, for the year 2022, federal, state, and municipal governments are expected to receive up to R$ 117.8 billion from oil and gas companies.

Of this total, R$ 44.9 billion is to be allocated to the Union, R$ 38.2 billion to state governments, and R$ 24.7 billion to municipalities.

Thus, the national oil market continues to show itself as one of the pillars for the development of the Brazilian economy, driving socioeconomic growth in the country.

Ruth Rodrigues

Formada em Ciências Biológicas pela Universidade do Estado do Rio Grande do Norte (UERN), atua como redatora e divulgadora científica.

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