Oil Production From Megaleilão Areas Will Double Revenue

Oil Fields That Will Be Offered in the Mega Auction of the Use Transfer Scheduled for October Will Generate R$ 52.5 Billion Per Year for Public Coffers

Yesterday (09/30) Click Oil and Gas reported that the mega auction of oil from the use transfer will have 14 companies, with the confirmation of the sale of all areas in the Santos basin, the federal government, states, and municipalities will be able to count on R$ 52.5 billion per year.
To give an idea of the values, the figure is quite close to the revenue from royalties and special participations (PEs) in 2018, which was R$ 55.2 billion.

The estimate comes from ANP, which expects this revenue based on the four areas (Atapu, Búzios, Itapu, and Sépia) producing starting in 2024, representing a doubling of the revenue predicting a production of 1.2 million barrels per day from the pre-salt fields of the Santos basin.

If we take into account the income tax to be paid by oil companies, the amount will reach around R$ 70 billion per year.

According to the ANP’s Director-General, Décio Oddone, “this estimated volume of tax revenue is practically equivalent to a pension reform,” citing the amount of R$ 876 billion that the government will save over 10 years with the new retirement rules.

Rio de Janeiro

The state of RJ will be the biggest beneficiary of the mega auction, as almost 60% of the oil royalty share is divided among producing states and cities.
The revenue even led the state governor, Wilson Witzel, to declare that RJ will end up in the black thanks to the money from the use transfer.

The signing bonus for the mega auction is set at R$ 106.5 billion, and being a producing state will guarantee a larger share than others.
It has already been approved in the senate that RJ will receive 2.5 billion reais from the use transfer and only the approval of the Chamber is pending.