New Bill in Congress Establishes New Parameters for Oil Royalty Distribution

Written by Paulo Nogueira

Published on 18/06/2019 at 19:08

Be the first to react!

Bill 1470/19 Distributes Oil And Gas Royalties To States And Municipalities According To The Rules Of The State Participation Funds (FPE) And The Municipalities (FPM).

Oil, shale, and natural gas exploration companies must compensate 8% of the value of the products, with half going to states and half to municipalities. Currently, the Oil Law (9,478/97) ensures greater financial compensation to states and municipalities where extraction occurs. According to the law, compensation of up to 5% of production is divided as follows: 70% of the royalties go to producing states; 20% to producing municipalities; and 10% to municipalities affected by loading and unloading operations of oil and natural gas.

For the amount exceeding 8% of production, the proposal distributes resources in 37.5% to states and another 37.5% to municipalities, and 25% to the Ministry of Science, Technology, Innovations and Communications (MCTIC). The Oil Law divides what exceeds 5% of production as follows: 52.5% to producing states; 15% to producing municipalities; 7.5% to municipalities affected by loading/unloading operations; and 25% for the MCTIC. The same logic applies to the sharing of what is extracted in offshore fields; the resources go to all states and municipalities, not just those that are producing or affected by the production.

ARTICLE CONTINUES BELOW

Ministry Releases Issuance Of Bonds For Oil And Gas Projects

The Minister of Mines and Energy, Bento Albuquerque, signed an ordinance on Monday, June 17, that allows the raising of funds through the issuance of debentures for oil, natural gas, and biofuel projects. Bento Albuquerque announced the measure that regulates the classification of priority projects in the three sectors in São Paulo during the Ethanol Summit 2019.

“Today we concluded an act of the federal government that perfectly translates what we intend to do to unlock the investments that the country so desperately needs, generating jobs and income,” declared the minister.

In addition to the Minister of Mines and Energy, Bento Albuquerque, the opening of the event was attended by the Minister of Agriculture, Tereza Cristina, the Minister of the Civil House, Onyx Lorenzoni, the Governor of São Paulo, João Dória, the president of Apex-Brasil, Sergio Ricardo Segovia Barbosa, among other authorities.

“The expectation is that the measure will strengthen the goals of RenovaBio with the expansion of the number of biofuel plants and, consequently, increase the supply of ethanol, potentially reducing fuel prices for consumers,” stated the MME in a note, citing an investment of R$ 9 billion per year with the renewal of sugarcane fields and an additional R$ 4 billion with the increase in sugarcane production.

“With the implementation of RenovaBio, investments will be even greater. We estimate that approximately R$ 60 billion per year will be needed in this sector,” he stated.

Sale of UFN3 from Petrobras to a Russian company will generate 10 thousand jobs in Mato Grosso do Sul

New Bill in Congress Establishes New Parameters for Oil Royalty Distribution

Bill 1470/19 Distributes Oil And Gas Royalties To States And Municipalities According To The Rules Of The State Participation Funds (FPE) And The Municipalities (FPM).

Ministry Releases Issuance Of Bonds For Oil And Gas Projects

Mother and daughter build a 70 m² house with more than 8,000 discarded glass bottles and impress with their creativity; known as the Casa de Sal, the property is located on Itamaracá Island, in Pernambuco.

Workers were opening a new road connection near the Marginal Tietê when they found, in the underground of the construction site, remnants of locomotives, wagons, and boilers from the 19th century linked to the forgotten history of Lapa.

Instead of burning or burying old tires, an American city is transforming about 2,000 of them into the street itself, paving its first sections with a quieter and more durable rubber asphalt.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

He transformed an abandoned plastic water tank into an underground house in the “hobbit hole” style, using only repurposed pallet wood, without heavy machinery or expensive labor.

Greek island offers free housing for volunteers, but there’s a condition: you need to take care of rescued cats.

The river that “dies” in the desert never reaches the sea and yet gives life to one of Africa’s largest natural refuges in a truly impressive way.

Drivers with licenses nearing expiration received an unexpected reprieve on the calendar, but the Contran extension only applies to those within specific dates.

Embrapa takes cashew, peanuts, and sesame to the world’s largest seed bank in Norway, where Brazil has already stored more than 8,000 samples since 2012 against pests and climate change.

China prepares mBridge, a new digital payment system with blockchain that promises transactions in seconds, lower fees, and the advancement of the digital renminbi while aiming to reduce dependence on the dollar in global trade.

Norway will excavate 3 million cubic meters of rock to open a 1,700-meter maritime tunnel, where ships will pass through a mountain in 10 minutes, escaping a stretch that has killed more than 30 people since 1900.

São Paulo accelerates basic sanitation with R$ 70 billion until 2029, expands treated water, sewage, and promises to advance universalization four years ahead of the national deadline.

New Bill in Congress Establishes New Parameters for Oil Royalty Distribution

Bill 1470/19 Distributes Oil And Gas Royalties To States And Municipalities According To The Rules Of The State Participation Funds (FPE) And The Municipalities (FPM).

Ministry Releases Issuance Of Bonds For Oil And Gas Projects

Mother and daughter build a 70 m² house with more than 8,000 discarded glass bottles and impress with their creativity; known as the Casa de Sal, the property is located on Itamaracá Island, in Pernambuco.

Workers were opening a new road connection near the Marginal Tietê when they found, in the underground of the construction site, remnants of locomotives, wagons, and boilers from the 19th century linked to the forgotten history of Lapa.

Instead of burning or burying old tires, an American city is transforming about 2,000 of them into the street itself, paving its first sections with a quieter and more durable rubber asphalt.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

He transformed an abandoned plastic water tank into an underground house in the “hobbit hole” style, using only repurposed pallet wood, without heavy machinery or expensive labor.

Greek island offers free housing for volunteers, but there’s a condition: you need to take care of rescued cats.

The river that “dies” in the desert never reaches the sea and yet gives life to one of Africa’s largest natural refuges in a truly impressive way.

Government announces R$ 370 million for those who preserve the forest and an unprecedented initiative places traditional Amazonian communities at the center of conserving a vast area.

A family from Martins, in the interior of RN, planted seeds in their backyard that no one remembered where they came from and harvested a green and yellow fruit resembling the Brazilian flag; the nickname “World Cup pumpkin” caught on before they discovered what had actually grown there.

Most people use a tape measure their whole lives without ever understanding why some numbers are painted red; the explanation lies in a 16-inch spacing that is invaluable for those who work with walls and wood.

Without ATMs, with social networks blocked and travel controlled by the government, Eritrea challenges the modern world and reveals why it is called the “North Korea of Africa.”

Single wives in the “Little Italy” of Africa live decades without their husbands and support entire families after frustrated promises of migration to Europe.

Drivers with licenses nearing expiration received an unexpected reprieve on the calendar, but the Contran extension only applies to those within specific dates.

Embrapa takes cashew, peanuts, and sesame to the world’s largest seed bank in Norway, where Brazil has already stored more than 8,000 samples since 2012 against pests and climate change.

China prepares mBridge, a new digital payment system with blockchain that promises transactions in seconds, lower fees, and the advancement of the digital renminbi while aiming to reduce dependence on the dollar in global trade.

Norway will excavate 3 million cubic meters of rock to open a 1,700-meter maritime tunnel, where ships will pass through a mountain in 10 minutes, escaping a stretch that has killed more than 30 people since 1900.

São Paulo accelerates basic sanitation with R$ 70 billion until 2029, expands treated water, sewage, and promises to advance universalization four years ahead of the national deadline.