Portuguese 
English 
Spanish 
3 min of reading 
0 comments 
Understand How a New Measurement from IBGE Can Change the Financial Future of Niterói, Maricá, São Gonçalo, and the Fluminense Capital
The Federal Supreme Court established a deadline of 80 days for the Brazilian Institute of Geography and Statistics to present a new technical survey. This study will be essential for reviewing the territorial limits of municipalities in the Rio de Janeiro Metropolitan Region. Consequently, the distribution of royalties from oil and natural gas may be revised, promoting a fairer and more proportional distribution among the cities involved.
Reconciliation Between Municipalities and Active Participation of the STF in Search of Consensus
During a reconciliation hearing held on May 22, 2025, the STF gathered the mayors of Niterói, São Gonçalo, Rio de Janeiro, Maricá, Magé, and Guapimirim. In this meeting, it was decided that IBGE must deliver the preliminary technical study within the established timeframe. Additionally, the municipalities should maintain dialogue to enable a joint and transparent solution that minimizes potential budgetary losses. This collaborative approach aims to avoid future legal impasses and ensure fairness in local public finances.
Municipalities Assess Financial Impacts and Propose Creation of an Intermunicipal Fund
The city of Niterói, which may be strongly affected by the redistribution, proposed an intermunicipal fund. The suggested amount is up to R$ 350 million, aimed at compensating potential revenue losses. The municipality warned of the possibility of an 11% reduction in its annual budget if the new division comes into effect. Maricá projects a 4% loss, while the fluminense capital, Rio de Janeiro, would have a smaller impact of around 0.5%. The proposals were received with caution but also with a willingness to negotiate.
-
OPEC reduces oil demand forecast for 2026, but bets on global market recovery in 2027
-
Braskem’s new generation tankers will cross over 5,500 nautical miles between the U.S. and Brazil, reduce CO₂ emissions by 30%, and transport naphtha with modern engines, an optimized hull, and a focus on at-sea efficiency on a strategic route.
-
Weatherford secures offshore contracts in Brazil through 2030 with operations in the Búzios field and Campos Basin.
-
Oil-bearing rocks: the most oil-rich place on the planet, with more than 30 supergiant fields and 5 billion barrels in each one
History of the Legal Dispute and Previous STJ Decisions on Royalties
The controversy over royalties began in 2022 when different entities filed injunctions against the technical criteria used by IBGE. In April 2025, the Superior Court of Justice denied an appeal from Magé, Guapimirim, and São Gonçalo. This decision upheld the current distribution model, preventing cities like Niterói, Maricá, and Rio de Janeiro from losing a significant portion of their revenues from offshore exploration. This sequence of decisions reinforces the need for accurate data to support future definitions.
Dispute Over Oil Royalties Has Been Ongoing Since 2022 and Recently Had a Decision from the STJ
IBGE, therefore, technically justified the continued inclusion of Niterói as a beneficiary of royalties, as the city meets fundamental criteria defined by regulation. Additionally, the municipality has a wide coastal strip, positioning it favorably in relation to oil fields located offshore. While other factors are relevant, this geographical aspect stands out due to its direct influence on oil activities. Furthermore, there is specialized port infrastructure and logistical bases oriented toward maritime operations. With all these elements, IBGE supports the inclusion of the city in the Main Production Zone. This classification is essential for maintaining the current public revenues of the municipality.
IBGE Technical Study Is Decisive for the Future Division of Royalties in the State of RJ
The new technical study was recently presented. The STF will likely schedule a hearing. The parties involved seek to promote dialogue constructively. During the meeting, participants should evaluate the results while discussing the feasibility of reaching a definitive agreement among the municipalities. It is hoped that the redesign of municipal boundaries will provide, albeit gradually, a fairer and more balanced redistribution of royalties. Furthermore, the measure could favor local budgetary stability while simultaneously strengthening the integration among metropolitan entities. Finally, the mayor of Rio de Janeiro emphasized this point during the public hearing. The mayor of São Gonçalo also reinforced the same issue.
-
1 person reacted to this.