Revenue from oil and gas exploration was R$117.9 billion last year; barrel price did not reach such significant values this year
The collection of compensation revenue for oil and natural gas production broke a record in 2022. The transfers of royalties and so-called special participation relating to large producing fields totaled R$ 117.9 billion last year. This is an increase of 52.1% compared to 2021, when the total was R$77.5 billion.
Royalty payments alone grew 56% in volume, totaling R$ 59.1 billion. The data is contained in the Brazilian Statistical Yearbook of Petroleum, Natural Gas and Biofuels 2023, an x-ray of the decade of the sector launched on Monday (16.Oct.2023) by ANP (National Agency for Petroleum, Natural Gas and Biofuels). Here’s the complete of publication (PDF – 25 MB).
Both revenues are paid by oil companies to the federal government, states and municipalities as a form of compensation for their activities. Royalties are monthly, considering the production of the set of fields. Special participations are quarterly and are only paid in cases of high production in a single field, which happens in the pre-salt.
The scenario seen in 2022, however, should not be repeated this year. The ANP’s projection is that oil revenues will fall to R$92.6 billion. The estimate considers a barrel of Brent oil at an average of US$83.63 for the year. So far, even with the war between Israel and Hamas, the average value in 2023 is close to what was projected.
It turns out that 2022 was an atypical year. The price of oil on the global market soared after Russia’s invasion of Ukraine and restrictions imposed on Moscow, which affected global oil supply. A barrel surpassed US$100, something not seen in 2023.
The rise had its pros and cons. On the one hand, the rise in fuel prices to unprecedented levels last year, which affected the government and the re-election of Jair Bolsonaro (PL). A liter of gasoline, for example, cost around R$9 at gas stations across the country. On the other hand, there was an increase in government revenue in an election year.
The federal government’s cash flow was reinforced by R$45.1 billion, including royalties and special participation received. The producing states received R$37.9 billion in total. Rio de Janeiro took 80% of the share: R$30.5 billion.
#record #royalties #scenario #repeated