Espirito Santo Oil & Natural Gas Yearbook 2021 slide image

Espirito Santo Oil & Natural Gas Yearbook 2021

48 ESPÍRITO SANTO OIL & NATURAL GAS YEARBOOK | 2021 CHAPTER 3 GOVERNMENT SHARE AND ECONOMIC IMPACTS Chart 32 Revenues from Special Shares in Espírito Santo in constant amounts (R$ million) 3,000 to 2019, the amounts paid in SS by these fields were respectively re- duced by -44.5% and -99.9%, and these results are explained by the lower production of oil and natural gas in both areas (Table 2). In the case of Rocandor, it was only in Q1 2020 that a positive net income was recorded for calculating the SS. 2,500 2,000 1,500 1,000 500 3.1.2. Special Shares (SS) The special share is a financial compensation paid by oil compa- nies that have fields with a high production volume 18. I.e., this is an extraordinary payment related to the productivity level of an area. The calculation of the amount to be paid in SS is made by applying progressive rates 19 on net reve- nues 20 from the quarterly produc- tion of each field. After the unification of Parque das Baleias 21, Espírito Santo passed to border two fields that generated special share resources in 2020: Jubarte (R$ 751.0 million) and Ron- cador (R$ 0.21 million). Compared Table 2 Special participations paid by fields bordering Espírito Santo - 2020* (R$ million) 0 49 49 Field Jubarte Roncador** 2019 3,170.50 751.04 Estate of ES Municipalities of ES 2020 Variation Source: ANP | Prepared by: Ideies/Findes 1,759.94 -44.5% 0.21 -99.97% (*) Amounts with deflation calculated according to the IPCA index (accumulated from Jan-Dec 2020). (**) The field also borders the State of Rio de Janeiro. Therefore, part of that amount is also distributed to the State Government and the municipalities in Campos dos Goytacazes and São Joao da Barra. Source: ANP | Prepared by: Ideies/Findes In 2020, Espírito Santo received a total of R$ 1.2 billion in special shares. Of that amount, R$ 997.1 million were allocated to the State government and R$ 249.3 million to the municipalities of Marataízes, Presidente Kennedy, Piúma, and Itapemirim, which border the fields that entail the SS. In 2020, compared to the same pe- riod of the previous year, revenues from special shares fell by 53.1% for the State government and the afore- mentioned municipalities in Espírito Santo. It is worth reminding that Es- pírito Santo beat the record in col- lection the of SS due to the signing of the contract to unify the Parque das Baleias in 2019, and therefore the comparison base was also atyp- ically high (Chart 32). In 2020, Espírito Santo was the sec- ond State that received the most revenues from special shares, sec- ond only to Rio de Janeiro (R$ 8.7 billion), which accounted for 5.2% the total special shares received by the country. The other States that received these resources were: São Paulo (R$1.1 billion), Amazonas (R$41.0 million), and Bahia (R$1.5 million). We point out that the unification of Parque das Baleias, through the "Settlement for Ending the Dispute Involving the Areas of the Contract and Concession BC-60", has also created a retroactive balance of the special share to be paid in 42 install- ments by Petrobras to the Federal Government (50%), to the Govern- ment of the State of Espírito Santo (40%) and the municipalities (10%) 22 of Itapemirim, Marataízes, Piúma, and Presidente Kennedy. In 2020 alone, Petrobras paid a to- tal of R$ 620.8 million in SS refer- ring to the execution of that agree- ment. Of that amount, R$ 248.3 million were destined for the Gov- ernment of the State of Espírito Santo and R$ 62.8 million for the municipalities of the State 23. Ranking of amounts received in Special Shares 1st: Rio de Janeiro R$ 8.7 billion Reais were received by Rio de Janeiro in Special Shares 18. Its regulation happens through Law 9.478/97 (Petroleum Act) and Decree 2.705/1998. 19. They vary according to the location of the well, the number of production years, and the quarterly production volume calculated. 20. ANP monitors the cost of oil companies so it may calculate that net income. Moreover, are also considered the projected deductions (roy- alties, investments in the exploration, overhead, depreciation, and taxes). 2nd: Espírito Santo R$ 1.2 billion billion was received by Espírito Santo in Special Shares 21. In April 2019 was signed the unification field in connection with the fields part of Parque das Baleias, composed by the areas of Jubarte, Baleia Azul, Baleia Franca, parts of Cachalote, and Pi- rambu, in the Campos Basin. With that, one single large producing field was formed, which is now called "Novo Campo de Jubarte" or simply "Jubar- te". That unification created a substantial volume of SS payments to Espírito Santo. For more de- tails, access the previous edition of this Yearbook: https://portaldaindustria-es.com.br/system/re- positories/files/000/000/952/original/Anuario_ Petroleo-ES_2020_port.pdf?1618494352 3rd: São Paulo R$ 1.1 billion billion reais were received by São Paulo in Special Shares 22. Pursuant to art. 50 of Law 9.478/97, the distri- bution of the special share is made in the following manner: i) 40% to the Ministry of Mines and Energy (MME) and 10% to the Ministry of the Environment (MMA), totaling 50% to the Federal Government; iii) 40% to the States; and iv) 10% to municipali- ties. In the case of Jubarte, the amount paid to the municipalities is distributed among Itapemirim (32.3045%), Marataízes (37.7702%), Piúma (0.3230%), and Presidente Kennedy (29.6023%). 23. Learn more about the ANP reports regarding the "Novo Campo Jubarte Agreement" at: https:// www.gov.br/anp/pt-br/assuntos/royalties-e-out- ras-participacoes/participacao-especial
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