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Rio de Janeiro Will Set a Record in Oil Royalties This Year, Estimated That the State Will Receive Between R$ 14 Billion and R$ 16 Billion
Good news for Rio de Janeiro, in addition to the fact that the city’s old glamour is returning, FIRJAN announced this Wednesday, August 7, an estimate that the state will receive between R$ 14 billion and R$ 16 billion in royalties and special participation in 2019 – an increase of about 10% compared to 2018.
The economy of Rio is expected to gain momentum in terms of revenue this year thanks to recent projects contracted in the exploration and production of oil and gas.
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Experts from the Federation of Industries of Rio de Janeiro estimate an even greater growth in the collection of royalties and special participations.
For the 2nd half of this year, the 16th Bidding Round, the 6th Production Sharing Round (pre-salt), and the auction of the surplus from the Cessão Onerosa are all planned, with areas offered off the coast of Rio.
The organization predicts that Rio de Janeiro will be the most benefited state from the new investments, especially in job creation.
Firjan reports that by 2027, the number of jobs in the operation and maintenance of stationary production units for oil and gas could reach 516,000; currently, there are 5,200 employees.
“Everything that Rio suffered in the oil and gas sector in recent years, which reflected in public revenue, should no longer be felt if these resources are well applied”, said Karine Fragoso, the manager of Oil, Gas and Naval at Firjan.
Firjan stated in a statement that the Cessão Onerosa “is considered the most important auction in the world in recent times, and it should provide the payment of a signing bonus of tens of billions of reais”.
516,000 Jobs Will Be Created by 2027
In 2018, Rio de Janeiro had about 5,200 employees in the operation and maintenance of stationary production units for oil and gas. Estimates by Firjan indicate that by 2027, this number will reach 516,000.
According to Firjan, the estimate is that for every US$ 1 billion invested in the oil and gas sector, about 25,000 jobs are generated, and each platform requires 300 direct workers and another 600 indirect workers.
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