Unpublished Collection: Rio can reach R $10 billion in royalties

With revenues of R $8.9 billion – about 72% of the national total – only in the first nine months of 2018, Rio de Janeiro can make an even greater leap in numbers in 2020. According to Firjan’s projections, the current pre-salt extraction records refer the municipalities Fluminense to the unprecedented level of R $10 billion in royalties and Special Participations. Currently The State is one of the main beneficiaries of the Country, whose coastline is confronted with the largest fields of the Santos Basin and the post-salt of the Campos Basin.

However, not all 92 municipalities in the State will benefit. The destination of the recipes must go to Niterói, Maricá, Saquarema, Araruama and Arraial do Cabo. Each of them receives about R $1 every R $4 of all that the municipality collects with royalties and special participations. Together These cities managed to collect, only in 2018, about R $3 billion and this number only tends to rise in the next five years, mainly due to the beginning of the operations of nine pre-salt platforms on the coast of these municipalities.

But, there are chances that the volume is still better, since Petrobras, who owns the units in the municipalities, predicts revenues in the order of R $150 billion up to 2023, to be divided between the Union, States and municipalities in government participations. The benefit has been so prosperous in the municipalities Fluminense that Maricá and Niterói – who broke the house of the billion reais in just two years (between 2016 and 2018) – decided to create funds to save portions of the collections, already having both accumulated an equity of R $ 100 million.

For the next decade, savings are expected to reach the house of the billion, and according to Firjan’s data, the cipher is near. But, Maricá expects more, the municipality estimates raising in the vaults about R $14 billion in petroleum royalties within eight years. Apparently, the winds tend to blow strong and light in Rio de Janeiro.

What are royalties 

For the right to exploitation of oil in the states and municipalities, the oil companies pay the Union cash values for each percentage or quantity extracted. The special participations are an additional and are charged to companies when there is a large volume of production or profitability. The price paid depends on the exchange rate in the dollar, the price of the barrel and the volume produced.

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