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Reate 2020: 5% royalty technical note goes to public consultation in August

07/31/2020 | 16h39
Reate 2020: 5% royalty technical note goes to public consultation in August
Dirceu Amorelli, ANP Dirceu Amorelli, ANP

In August, the National Agency of Petroleum, Natural Gas and Biofuels (ANP) plans to put the technical note on the expected reduction in royalties in small or medium-sized companies' fields to a legal minimum of 5% in public consultation. The information was given by Dirceu Amorelli (photo), director of ANP, during the Brazil Oil & Gas Circuit, this Thursday, 7/30, whose theme was the Macro Deliveries of Reate 2020 (Program to Revitalize the Activities of Exploration and Production of Oil and Natural Gas in Land Areas). With the participation of the Minister of Mines and Energy, Bento Albuquerque, the online event was organized by ONIP, in partnership with ABPIP and support from Firjan.


The reduction in the percentage will mainly benefit companies operating in onshore fields. “Next week we will deliver the technical note that will be sent to the Attorney's Office, which has 15 days to evaluate. At the most in 20 days - I am pushing for it to be at the August 13 meeting - we will post the draft for consultation. It is already a delivery of everything that has been worked on ”, affirmed Amorelli.


In his opening speech to the event, Bento Albuquerque said that the initiatives proposed in the first phase of Reate 2020 have the potential to take this market in Brazil to another level. "The program was created with the purpose of seeking progress in the implementation of a national policy that strengthens activities, in order to stimulate the development of a strong and competitive industry", he stressed. Bento Albuquerque also highlighted the importance of the plurality of operators and suppliers of goods and services.


"Onshore exploration does not rival the maritime"


Each of the program reports will be presented in the coming weeks in new events with greater depth, explained the minister, adding that the MME is planning the next stage, with a focus on monitoring the implementation of the proposed measures in this first phase.


Eduardo Eugenio Gouvêa Vieira, president of Firjan and ONIP's Deliberative Council, stated that it is necessary to make it clear that onshore exploration does not rival the maritime exploration, but rather multiplies the investment possibilities in Brazil, with the expansion of reserves, the generation of jobs, income and the development of an increasingly strong and competitive value chain.


“Today we have the chance to know the final reports of Reate 2020 to move forward in the national policy that strengthens the activity of oil and natural gas exploration in terrestrial areas”, said Eduardo Eugenio, emphasizing that the work, coordinated by the Ministry of Mines and Energy over the past six months has been instrumental in mapping and exploring the market's potential.


Heloísa Borges, director at the Energy Research Company (EPE), stated that the Report contains a series of recommendations to attract investments. According to her, of the 53 onshore basins in Brazil, only eight actually produce; and even these have the potential to increase activity. In addition, there are about 300 fields, which represent only 3% of national production.


“Hence the creation of Reate to move forward in carrying out the activities. And today, in the face of the crisis, this effort becomes essential. Onshore investments proved to be resilient in the crisis scenario, generating employment and income. It is essential to realize the power of the onshore to leverage local economies ”, he emphasized.


The meeting also counted on the participation of the MME oil, natural gas and biofuels secretary and the presidents and representatives of ABPIP and the Minas Gerais, Espírito Santo, Bahia and Rio Grande do Norte Industries Federations.


The Reate 2020 Committee Report will continue to be discussed in the Oil & Gas Circuit Brazil itself, in the coming weeks. Follow the dates below: 

08/05 - Onshore Oil and Gas Potential with EPE and guests 

08/12- PD&I, Regulation and Public Policies with ANP and guests 

08/19- Promotion of free competition with ME and guests 

08/26 - Environmental Licensing with MME and guests 

09/02- Unconventional Oil and Gas Potential with EPE and guests

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