Petrobras Fills Public Coffers With R$ 54.5 Billion in Royalties and Special Participation, Highest Amount Ever Paid by the Oil Company to the Federal Government, States, and Municipalities

The Brazilian Oil Giant Hits Historic Record, Collecting R$ 54.5 Billion for the Federal Government, States, and Municipalities. Significant Amounts Show That Petrobras’ Activities Generate Returns for Society as a Whole

Petrobras informed the market in a relevant fact on March 18 that it collected a total of R$ 54.5 billion for public coffers in 2021 solely in royalties and special participations, the highest annual amount ever paid by the company. According to the oil company, this amount represents a growth of about 70% compared to 2020 (R$ 32 billion), and approximately 36% in relation to 2019, the previous record (R$ 39.9 billion).

These significant amounts demonstrate that the activities of Petrobras generate returns not only for the company but for society as a whole. Over the last 5 years, the increase has been even greater. The amount collected in 2021 is about 285% more in royalties than what was paid in 2016 (R$ 14.2 billion).

Check Below the Evolution of Royalties Collected in the Last 5 Years

Petrobras Is the Main Company Paying Royalties and Special Participations to Brazilian Public Coffers

Petrobras is the main company paying royalties and special participations to Brazilian public coffers. In 2021, about 79% of the total resources collected related to royalties in Brazil were paid by the company. Regarding special participations, about 69% of the amount paid to public coffers during the period comes from Petrobras.

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Royalties constitute financial compensation owed by the concessionaires for the exploration and production of oil or natural gas. Royalties are charged on the value of the oil or gas field’s production and are collected monthly. The special participation is an extraordinary financial compensation owed by the concessionaires for exploration and production in high-volume production fields. The amounts are paid to the National Agency of Petroleum, Natural Gas and Biofuels, which distributes the collected value among the Union, States, and Municipalities, beneficiaries defined by law.

Petrobras Creates Good Practices Project for Municipalities Receiving Oil Revenues

Petrobras has expanded its involvement in initiatives that reinforce the adoption of integrity practices in Brazilian society. Although the application of resources collected from royalties and special participations is the responsibility of the Union and States and Municipalities, the company is implementing an initiative aimed at contributing to the better application of the resources collected from oil activities by municipalities to generate value.

Petrobras initiated a pioneering project called “Cooperating to Transform” in Quissamã, in the Northern Fluminense region, to support municipal management to improve public governance, internal controls, integrity, and transparency through solutions focused on efficiency to enhance the management of these resources.

The project has already shown good results: Quissamã is evaluating the creation of a fund to manage extra revenues, a sort of savings for the medium and long term with resources from oil revenue, and has been taking steps to improve public governance instruments and prevent fraud and corruption.