Minister Claims That Oil And Gas Auctions Could Raise R$ 106 Billion

The Minister of Infrastructure, Tarcísio de Freitas, stated that the auctions for oil and natural gas could raise R$ 106 billion for the government.

The information was released during a breakfast meeting with businessmen on Monday, June 24, in Rio de Janeiro. Freitas stated that two oil area auctions are already scheduled for this year. These include the 6th pre-salt auction and the auction for the surplus of the onerous assignment.

Although it was scheduled for 2019, the 16th Round of ANP Bidding was not mentioned. According to Freitas, the government has already held 23 concession auctions until April. This was one of the goals set by the administration of Jair Bolsonaro.

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The minister also emphasized that investment in infrastructure debentures has never been higher. According to his statements, the government issued R$ 2.3 billion in infrastructure debentures this year. “We issued more debentures than last year. We made debenture issuance for R$ 5 billion in investments and R$ 2.3 billion have already been launched and authorized,” the engineer stated.

Additionally, Freitas mentioned that he plans to extend the income tax exemption on debentures to legal entities and foreigners, as only individuals currently receive the exemption. According to the minister, the exemption could stimulate this segment, which has already shown good results.

The federal government postponed the date of the pre-salt oil mega-auction to November 6. The date for the event was announced along with the notice from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), in the Official Gazette of the Union (DOU).

The expectation is that the auction for the onerous assignment of the pre-salt will yield R$ 106.5 billion to the Union. Before the postponement, the National Energy Policy Council (CNPE) had stated that the pre-salt oil auction would take place on October 28.

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

The government estimates that it will be possible to raise R$ 1 trillion over the next 30 years with the exploration of four pre-salt oil blocks that are part of the mega-auction in November.

The resources, which will come from the collection of royalties (compensation paid by companies exploiting oil) and taxes, will fund the coffers of the Union, states, and municipalities. “It is R$ 1 trillion in 30 years of collection at the three levels. That is money and has a multiplier effect,” said Albuquerque.

The railway operated by Vale will be connected to the Açu port and will have a route through Comperj