The use of royalties in rio de Janeiro cities

Royalty, by definition, is a financial compensation to the states and municipalities that house the extraction activities and that suffer their direct impacts. According to the ANP (National Agency of Petroleum, Natural Gas and Biofuels), it would be a "remuneration to society for the exploitation of these non-renewable resources". 

In the case of oil, the federal government gets 30% of the royalties paid by the oil companies. The producing states receive 26.25% of the total. The municipalities where there is exploitation have another 26.25%. The remainder is divided between the other states and municipalities. There is also the payment of special interests, when the company operates a field with a large volume of oil production. In this case, 50% stay with the Union, 40% with the states and 10% with the municipalities.

According to agency data, which show the monthly value of royalties in the State of Rio de Janeiro in the last year, Maricá, Macaé, Saquarema, Niterói and Campos are the municipalities that have benefited the most from the resource. This year, only the city of Maricá has received an amount of R$ 545,444,264.87. Next comes Macaé, with R$ 432,183,687.05.Campos, for example, was the municipality that received the most royalties and special interests in the last ten years, in the north of Rio de Janeiro, with R$ 12 billion, according to a survey by the consultancy Macroplan. 

The spatial proximity to the largest oil basins in the country explains the values allocated to the sites and makes the State of Rio de Janeiro the beneficiary of significant amounts of resources linked to oil revenues. Thus, royalties end up becoming for many municipalities the main source of income in the region, having an important role in the social and economic development of the city.

In other words, the resources enable greater investments in infrastructure in the municipalities, which can be used to provide local governments with the resources needed to meet the excessive demand for public services.Click here to see all the cities of Rio de Janeiro that benefit from the distribution of royalties. 


8 thoughts on “The use of royalties in rio de Janeiro cities

Leave a Reply