Espirito Santo Oil & Natural Gas Yearbook 2021
CHAPTER 3 GOVERNMENT SHARE AND ECONOMIC IMPACTS
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Chapter 3
GOVERNMENT
SHARE AND
ECONOMIC
IMPACTS
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The exploration and production
of oil and natural gas generate de-
mands for goods and services that
create a specialized market around
them. The consequences are an
expansion in the number of compa-
nies, qualified jobs, investments and
payment of financial compensation,
and taxes relative to the exploration
of this natural resource.
R$ 47.0
billion
were paid for oil and natu-
ral gas production in Brazil
in connection with the
government share in 2020
The composition of
payments made to the
Federal Government,
States, and Municipalities
was as follows
Special 50.8%
shares
Royalties 48.5%
Occupancy 0.6%
rate
Signing 0.03%
Bonus
3.1. Government Share
The oil companies bidding in oil
and natural gas fields 12 pay finan-
cial compensation for exploring a
finite natural resource owned by
the country 13 referred to as gov-
ernment share.
In 2020, the production of oil and
natural gas in Brazil paid R$ 47.0
billion to the Government Share,
an amount allocated to the Feder-
al Government States and munic-
ipalities.
The breakdown of these pay-
ments in the country was: 50.8%
in special shares (SS); 48.5% in
royalties; 0.6% in area occupa-
tion or retention fee; and 0.03%
in signing bonuses 14. We point
out that only the first two are also
redirected to State governments
and municipalities.
In 2020, the amount paid in the
government share in Brazil was
reduced by 64.4%, compared
by the same period in the previ-
ous year. This drop was mainly
caused by the lower generation
of signing bonuses (-99.9%), the
amount disbursed by the compa-
nies that won the bidding, due to
the postponement of ANP auc-
tions caused by the Covid-19 pan-
demic. Furthermore, there were
also reductions in revenues rom
government share (-29.7%) and
royalties (-6.8%) in the country
Overall, Espírito Santo received R$
2.3 billion in Government Shares
in 2020, which corresponded to
5.0% of the total amount in the
country. It was the third larg-
est share collection among the
states, only behind Rio de Janei-
ro (R$ 18.7 billion) and São Paulo
(R$ 2.5 billion). Of that total, 53.8%
was allocated to the Government
of Espírito Santo and 46.2% to the
municipalities.
12. Companies that win the bidding rounds held by
ANP (Law 9.478/1997).
13. Art. 20 of the Federal Constitution.
14. The signing bonus is a government share only
destined for the Federal Government.View entire presentation