Discover the Federal Government's Revenue Machine That Will Generate Over R$ 500 Billion for Public Coffers and Is Little Known by Brazilians

Discover the Federal Government’s Revenue Machine That Will Generate Over R$ 500 Billion for Public Coffers and Is Little Known by Brazilians

Written by Junior Aguiar

Published on 19/04/2022 at 15:44

Updated on 19/04/2022 at 19:17

A Pré-Sal Petróleo (PPSA) administra os contratos em regime de Partilha de Produção

Seja o primeiro a reagir!

More Than R$ 500 Billion Will Be Raised by the Union in 10 Years Through Production Sharing Contracts of the Pre-Salt, According to PPSA.

The Pré-Sal Petróleo (PPSA) is a federal public company linked to the Ministry of Mines and Energy, responsible for managing the contracts under the Production Sharing regime, little known to Brazilians. The state-owned company manages the amounts that the Union receives by right from the exploration of oil in the pre-salt polygon from both Petrobras and partner companies.

PPSA was created in 2013 under the government of Dilma Rousseff. Since then, about R$ 3.6 billion has been delivered to the Union. And this money continues to grow. In 2021 alone, the amount raised was R$ 1.22 billion, representing an increase of 74% compared to the year 2020. For 2022, the projection is that the amount will double.

These projections come from PPSA itself. According to the state-owned company, the contracts will have a cumulative production of 8.2 billion barrels of oil over the next 10 years. Of that total, the Union’s share is equivalent to 1.5 billion barrels. In monetary terms, the revenue projection is US$ 116 billion (R$ 545.2 billion) during this period.

ARTICLE CONTINUES BELOW

Increase in Oil Field Production in Brazil

The more than R$ 3.6 billion raised comes from the fields of the so-called Mero Development Area (Libra Block – 6.4 thousand bpd), Buzios (5.8 thousand bpd), Surrounding Sapinhoá (Santos Basin – 4.5 bpd) and Southwest Green Turtle (Macaé – the excess oil belonging to the Union is allocated to settle debts with the operator according to the Production Individualization Agreement). Together, these oil fields comprise 71 pre-salt wells.

These oil wells will be joined by the fields of Sépia and Atapu, with the potential to add about US$ 7 billion to the public coffers by 2031. These two fields were auctioned in the Second Round of Excess Volumes from the Onerous Assignment. The contract signing is expected to take place later this month in April.

Growth Prospects for Production Sharing Contracts According to PPSA

There are currently 17 contracts in force in Brazil involving the Production Sharing regime. With the inclusion of the Sépia and Atapu blocks, there will soon be 19 contracts.

In January of this year, total production had an average daily output of 466 thousand barrels of oil per day. The average daily excess oil belonging to the Union in these current Production Sharing contracts was 17 thousand bpd.

For 2022, PPSA’s projection is that the Union will receive an average of 22 thousand bpd; in 2023, around 49 thousand; 84 thousand in 2024, 135 thousand in 2025, and in 2026 (the last year of the next government) approximately 278 thousand in 2026.

Regarding commercial utilization of natural gas, the contracts under the Production Sharing regime presented average daily production of 847 thousand m³/day.

How Much Will Petrobras and Other Companies Invest to Consolidate This Billion-Dollar Revenue by 2031?

PPSA indicates that Petrobras and the companies should invest around US$ 99 billion to contract at least 27 new ships capable of processing, storing, and transporting oil and natural gas (FPSO – Floating Production Storage and Offloading).

Discover the Federal Government’s Revenue Machine That Will Generate Over R$ 500 Billion for Public Coffers and Is Little Known by Brazilians

More Than R$ 500 Billion Will Be Raised by the Union in 10 Years Through Production Sharing Contracts of the Pre-Salt, According to PPSA.

Increase in Oil Field Production in Brazil

Growth Prospects for Production Sharing Contracts According to PPSA

How Much Will Petrobras and Other Companies Invest to Consolidate This Billion-Dollar Revenue by 2031?

Scientists enter a narrow, flooded cave 500 meters deep and find giant dinosaur footprints on the ceiling measuring up to 1.25 meters, preserved in such a rare way that a new type of trace had to be created.

In Botswana, a salt flat of up to 16,000 km² that was once an African megalake spends months as an absolute white desert, but during the rainy season it transforms into a shallow sea that reappears from nowhere and can be seen from space in the middle of southern Africa.

A giant half-ton ring fell in Kenya from space, and more than a year later, scientists still do not know where it came from.

After two years of internal discussions, Paraguay has finally regulated the law that opens the country to foreign technology and service companies with tax incentives that promise to create thousands of jobs and change the economy.

Map reveals how the Earth may look in 250 million years: continents will reunite in the Last Pangaea, 92% of the planet could become uninhabitable for mammals, and Spain appears among the rare possible exceptions.

About 6,000 residents live concentrated along a single street nearly 9 km long in the interior of Poland, with houses forming a continuous row and narrow agricultural strips emerging behind them, creating one of the most unusual rural patterns in Europe.

With 1,000 buses sent abroad, the Brazilian manufacturer consolidates the strength of national technology and takes on a leading role in public transportation across all of Latin America.

Seen from space, an image taken by an astronaut shows in Argentine Patagonia the exact point where a colossal glacier, a turquoise-blue lake, and a greenish arm of water meet, creating one of the rarest and most impressive landscapes in the region.

Workers are being forced to train the AI that will replace them in their jobs.

From discarded waste to completed constructions: startup creates modular blocks with recycled plastic that reduce construction costs, eliminate the need for specialized labor, and accelerate projects in Brazil.

Archaeologists found in the desert an oasis 5,000 years old surrounded by giant walls, in a discovery that reveals a civilization much more complex, powerful, and organized than previously thought.

Discover the Federal Government’s Revenue Machine That Will Generate Over R$ 500 Billion for Public Coffers and Is Little Known by Brazilians

More Than R$ 500 Billion Will Be Raised by the Union in 10 Years Through Production Sharing Contracts of the Pre-Salt, According to PPSA.

Increase in Oil Field Production in Brazil

Growth Prospects for Production Sharing Contracts According to PPSA

How Much Will Petrobras and Other Companies Invest to Consolidate This Billion-Dollar Revenue by 2031?

Scientists enter a narrow, flooded cave 500 meters deep and find giant dinosaur footprints on the ceiling measuring up to 1.25 meters, preserved in such a rare way that a new type of trace had to be created.

In Botswana, a salt flat of up to 16,000 km² that was once an African megalake spends months as an absolute white desert, but during the rainy season it transforms into a shallow sea that reappears from nowhere and can be seen from space in the middle of southern Africa.

A giant half-ton ring fell in Kenya from space, and more than a year later, scientists still do not know where it came from.

After two years of internal discussions, Paraguay has finally regulated the law that opens the country to foreign technology and service companies with tax incentives that promise to create thousands of jobs and change the economy.

Map reveals how the Earth may look in 250 million years: continents will reunite in the Last Pangaea, 92% of the planet could become uninhabitable for mammals, and Spain appears among the rare possible exceptions.

About 6,000 residents live concentrated along a single street nearly 9 km long in the interior of Poland, with houses forming a continuous row and narrow agricultural strips emerging behind them, creating one of the most unusual rural patterns in Europe.

With 1,000 buses sent abroad, the Brazilian manufacturer consolidates the strength of national technology and takes on a leading role in public transportation across all of Latin America.

China could impose a quarantine on Taiwan without firing a shot, using the coast guard and inspections to force submission, blocking trade, raising insurance costs, and leaving the U.S. divided between reacting or accepting.

Millions of Brazilians over 60 years old do not know that they need a second document in addition to their ID to use exclusive parking spaces, and the infraction for not carrying it is considered very serious, with fines and vehicle towing.

Paraíba shoots up and has the most expensive square meter in the Northeast, and the increase in labor puts the region at the center of pressure, with Bahia recording the highest monthly increase in Brazil in construction.

BNDES and a Chinese bank create a billion-dollar fund of $1 billion to invest in Brazil in energy, infrastructure, mining, agriculture, and AI.

INSS confirms the 2026 13th salary calendar, but excludes thousands of elderly from payment; find out now who is left out and how to check by CPF.

Seen from space, an image taken by an astronaut shows in Argentine Patagonia the exact point where a colossal glacier, a turquoise-blue lake, and a greenish arm of water meet, creating one of the rarest and most impressive landscapes in the region.

Workers are being forced to train the AI that will replace them in their jobs.

From discarded waste to completed constructions: startup creates modular blocks with recycled plastic that reduce construction costs, eliminate the need for specialized labor, and accelerate projects in Brazil.

Archaeologists found in the desert an oasis 5,000 years old surrounded by giant walls, in a discovery that reveals a civilization much more complex, powerful, and organized than previously thought.