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Oil producing municipalities that receive royalties have suffered serious economic impacts due to Petrobras' measures to face the global crisis due to the new coronavirus, one of which is the hibernation of platforms in order to reduce 200 thousand barrels a day in their total production. New oil tankers contaminated by the coronavirus in the Campos Basin, this time on the P-26 in Macaé
Due to Petrobras reducing daily production by 7 percent and hibernating some platforms in the Campos Basin, as they do not have the economic conditions to operate.
The producing municipalities in the Campos Basin will suffer a major financial impact in the coming months in terms of the collection of royalties and special participations (PE).
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According to sector experts, since the Campos Basin will be drastically affected by the new measures adopted by the state-owned company, Campos, which is currently experiencing serious problems due to the scarcity of resources, will be one of the most affected municipalities.
Not only will there be a drastic reduction in the transfer of royalties, but also the dismissal of workers or dismissal through a voluntary dismissal agreement.
According to the director of oil and gas at the Superintendence of Science, Technology and Innovation in Campos, Diogo Manhães, in an interview with Campos 24 Horas, the reduction in revenue from oil royalties already occurs in April and for the municipality of Campos.
“These two reductions should also impact most of the producing municipalities in the Campos Basin, even the municipalities of Niterói and Maricá, as the two main fields that pay royalties to these municipalities – Lula and Búzios fields – suffered production reductions of 13,4 percent and 21,5 percent in February, respectively”, explains the director, adding that:
The executive also informs that according to the ANP Current oil and PE royalty estimates for Campos are approximately BRL 254 and BRL 30 million for the full year of 2020, respectively. That is, there will be a 30 percent reduction in royalty revenue and 76 percent in PE compared to 2019.
Specifically dealing with the hibernation of some oil platforms in the Campos Basin, recently announced by Petrobras, the following will be affected: production from the Cherne (2 platforms), Namorado (2 platforms) and Garoupa (1 platform) fields, despite other sources also inform that platforms will be hibernated in the Enchova and Pampo fields. “Petrobras also has plans to deactivate platforms in the Marlim, Marlim Leste, Marlim Sul and Barracuda fields, but it does not detail this planning, nor the impacts on production in each field”, says Diogo Manhães.
Currently, royalties paid to the municipality of Campos dos Goytacazes for the fields of Cherne, Enchova, Pampo, Namorado and Garoupa, which are already considered mature fields and which are assets in the process of being sold by Petrobras, represent only 1% of the municipality's revenue from royalties , therefore, the hibernation of these platforms will not result in major impacts on the municipality's revenue from royalties, which has its revenue structured in large production fields.
“The same cannot be said for the possible impact on royalty and PE revenue from the hibernation of platforms in the Barracuda and Marlim hub fields, which today represent 41% of royalty revenue received by the municipality and 50% of PE revenue. . But we are monitoring the information released by Petrobras and the ANP on a daily basis to analyze the possible additional impacts on the municipality's revenue from the hibernation of platforms in these fields”, says the director.
“There are no compensation measures. There is a compensation proposal, defended by the president of the Federal Chamber, Rodrigo Maia, for ISS of the municipalities. It has nothing to do with oil royalties. An alternative would be the redistribution of royalties from the Union to the municipalities, but this should not happen. So, the path is austerity and cost cutting”, concludes Diogo Manhães.
