The Government of the State of Rio de Janeiro created an Oil, Gas and Biofuel Commission, which will operate within the scope of the Economic Development Secretariat, with the objective of drawing up a reform proposal to modernize the state's sector legislation, which represents its greatest natural aptitude within the Federation and a larger portion of the State's revenue. Committee members will not be paid for their work.

"It is voluntary work on behalf of the state. We need to generate investment opportunities that benefit the population of Rio de Janeiro with jobs and income, especially in the context of the global recession ahead of us", explains Governor Wilson Witzel.

The group will be composed of representatives of the state government and invited members (representatives of the industry, municipalities and technicians of the segment) with the objective of improving public policy directed to the sector, through the elaboration of studies, opinions and proposals aiming at the modernization, simplification and de-bureaucratization of the current rules within the scope of the State of Rio de Janeiro.

"The proposed legislation will consider the recent changes in the international oil and gas scenario, marked by marked volatility and reduction in the price of a barrel of oil, as well as seek the development of a business environment that avoids the reduction of investments by the segment , which is accentuated by the crisis triggered by the coronavirus pandemic (COVID-19) ", explains the secretary of Economic Development, Lucas Tristão.

The need and desire of the State Government of Rio de Janeiro to modernize the legislation of the sector is old as part of a public policy to honor the main economic chain of the State of Rio de Janeiro.

The document should cover regulatory, fiscal and environmental proposals for all activities in the sector, from the exploration and development of oil and natural gas, to the lines of business related to import and export, transportation, distribution and marketing of fuels derived from oil and gas natural - including for power generation purposes -, in addition to promoting the biofuels chain.

"With the onset of the crisis by Covid-19, the need to revise the sector's legislation in order to improve the business environment, legal security, and thus overcome bureaucratic barriers, in order to minimize the negative impacts of the global recession ahead ", evaluates the secretary.

The Commission will have a period of 24 months to prepare the proposal and must prepare its internal rules and appoint its representatives within the next 30 days.