Exploration of 4 Pre-Salt Blocks Will Generate R$1 Trillion Over the Next 30 Years

Written by Paulo Nogueira

Published on 06/05/2019 at 18:50

Updated on 06/05/2019 at 19:56

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Government Forecasts Raising R$1 Trillion in 30 Years with the Exploration of Four Pre-Salt Blocks. According to Minister Bento Albuquerque, of Mines and Energy, the proposal is to share up to 70% with states

The government estimates that it will be possible to raise R$ 1 trillion over the next 30 years with the exploration of four oil blocks in the pre-salt that are part of the mega auction in October. The funds, which will come from the collection of royalties (compensation paid by companies that explore oil) and taxes, will flow into the coffers of the Union, states, and municipalities. “It’s R$ 1 trillion in 30 years of collection at the three levels. That’s money and it has a multiplying effect,” said Albuquerque.

The largest portion of the money raised from the pre-salt, which also includes the share belonging to the Union from the oil explored, will go to the federal government. However, Minister of Economy Paulo Guedes aims to make a more generous distribution of the amounts. The promise is to share up to 70% of the value obtained. The economic team already knows that, in order to divide the oil resources with states and municipalities, it will be necessary to amend the Constitution to create a new exception to the spending cap rule, which limits federal expenditures.

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Exploration of 4 Pre-Salt Blocks Will Generate R$1 Trillion Over the Next 30 Years

Government Forecasts Raising R$1 Trillion in 30 Years with the Exploration of Four Pre-Salt Blocks. According to Minister Bento Albuquerque, of Mines and Energy, the proposal is to share up to 70% with states

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Exploration of 4 Pre-Salt Blocks Will Generate R$1 Trillion Over the Next 30 Years

Government Forecasts Raising R$1 Trillion in 30 Years with the Exploration of Four Pre-Salt Blocks. According to Minister Bento Albuquerque, of Mines and Energy, the proposal is to share up to 70% with states

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