"Even with the impacts of the pandemic, the estimate is that US $ 415 billion will be invested in the national oil and gas exploration and production industry, in the next ten years, with the collection of taxes and the generation of thousands of jobs". The statement was made by the Minister of Mines and Energy, Bento Albuquerque, when he participated today, 30/10, in the opening ceremony of Rio Oil & Gas 2020. Promoted by the Brazilian Institute of Oil and Gas (IBP), the event is considered the largest in Latin America in the area of oil and natural gas. Also participating in the opening ceremony were the acting director general of the National Petroleum Agency (ANP), Raphael Moura, the presidents of the Chamber of Deputies and the Senate, Rodrigo Maia and Davi Alcolumbre, respectively, and the acting governor of the state of Rio de Janeiro, Cláudio Castro.

In his speech, Bento Albuquerque, announced, with enthusiasm, the realization, this Friday, 4/12, of the Second Cycle of the Permanent Supply, and in the sequence he made a brief retrospective of the advances promoted in the oil and natural gas industry in the last two years. He also spoke about the various actions implemented in 2019, within the scope of the Ministry of Mines and Energy (MME), among them, the four bidding rounds for exploration and production, in the concession or production sharing model, which allowed a collection of around 84 billion reais, only in subscription bonuses.

Another relevant action cited by the Minister was the revision of the Transfer of Rights contract and the consequent realization of the auction of the Volume of Surplus for Transfer of Rights, responsible for the record collection of almost 70 billion reais. The 6th Production Sharing Round and the 16th Concession Model Bidding Round, according to him, were also very successful. "Much higher than the subscription bonuses collected in this period will be the investments that will come as a result of the changes to be developed in these contracts in the coming years," said Bento Albuquerque.

“Brazil reached, for the first time in history, in January 2020, the average production of 4 million barrels of oil equivalent / day”, recalled the Minister, stating that, “despite the many challenges, the scenario was extremely promising for our industry ”. He highlighted the speed of the actions, by the MME and other government agencies, with a view to mitigating the effects of the pandemic. Among them, within the scope of the MME, the creation of sectorial executive committees and the implementation of structuring actions and the creation of programs, “all aimed at improving the business environment and attracting investments” such as the Program for the Revitalization of Activities of Exploration and Production of Oil and Natural Gas in Terrestrial Areas, REATE 2020, the Program to Improve Tenders for Exploration and Production of Oil and Natural Gas (BidSIM), the New Gas Market, Abastece Brasil, and Renovabio.

Another point cited by the Minister as relevant to the sector were the resolutions approved in 2020 by the National Energy Policy Council (CNPE). Some of these resolutions deserve to be highlighted, among them, the permission for the National Petroleum Agency (ANP) to promote the reduction of royalties to up to 5% for fields granted to small and medium-sized companies; the possibility of extending the concession contracts leading to the anticipation of investments in additional development projects in the producing fields; the creation of the Mesa Reate, with the objective of establishing a regional articulation forum for conducting structural issues aimed at solving challenges related to the terrestrial oil and natural gas chain, at the state level, and the development of a better environment for the Business.

Bento Albuquerque announced the creation, still in 2020, of the Campos Marítimos Revitalization and Incentive Program (PróMar), which will aim at expediting the useful life of mature fields and making feasible accumulations of oil and natural gas considered marginal in the marine environment .

Economic recovery 

According to the Minister, the signs of economic recovery are already visible: the demand for natural gas has already returned to pre-pandemic levels and national production is approaching historic highs; the fuel sector, which suffered a contraction in consumption, has already stabilized and there is a recovery in the consumption of diesel, gasoline and ethanol; the Second Permanent Supply Cycle of areas for oil and gas exploration and production, attracted the interest of 63 companies from 14 different countries, and there was an expression of interest in 16 sectors of different Brazilian sedimentary basins, both onshore and offshore. "I have no doubt that the auction will be successful," emphasized Bento Albuquerque, who also cited other advances such as the divestment process of Petrobras and the negotiations in the oil refining segment regarding assets being sold.

Even with the impacts of the pandemic, according to the Minister, the estimate is that US $ 415 billion will be invested in the national oil and gas exploration and production industry, in the next ten years, with the consequent collection of taxes and the generation of thousands of jobs.

He stated that, with these investments, oil production in Brazil should jump from the current 3 million barrels / day, to about 5.3 million barrels / day in 2030 and that Brazil will thus be among the top 5 producers and oil exporters in the world, in addition to net gas production, which will double in the decade.

"In this context, we will continue to be engaged in the implementation of actions aimed at maintaining and improving an environment conducive to the full development of our country's oil and natural gas industry," stated Bento Albuquerque.

Concluding his participation in the event, the Minister affirmed that “2021 will be a year of opportunities and many achievements”, with the conclusion of BidSim, the continuity of the Reate Tables in the states, the development of PróMar, the holding of the Transfer of Rights Surplus auction , the 3rd Permanent Offer Cycle and the 17th Bidding Round for the Concession Model.

Other achievements mentioned include the continuation of the implementation of the commitments assumed by Petrobras, of the Term of Commitment for Cessation of Practice signed with Cade (Administrative Council for Economic Defense) for the natural gas sector and for the oil refining segment.

“We will soon have, in our country, a new natural gas market in full operation and a new downstream scenario, more open, dynamic, competitive markets, with a greater plurality of agents, guaranteeing for the Brazilian consumer products with better conditions of offer, quality and price ”, highlighted Bento Albuquerque.

The Minister ended his speech by stating: “In view of this challenging but promising scenario, I reaffirm the commitment of the Ministry of Mines and Energy to, within its competences, and in partnership with public and private agents, promote continuous improvements in policies aimed at the oil and gas sector in Brazil ”.