The Brazilian Institute of Petroleum, Gas and Biofuels (IBP) considers it of great importance for the sector to extend Repetro, a decision by the government that will unlock investments, attract new agents to the country and maintain Brazil's competitiveness in the international scenario.

Sensitive to the litigation of the oil and gas industry, the government extended from 2020 to 2040, by means of a decree published on Friday (18), the special customs regime as it currently operates. Repetro, which has been responsible for the expansion of the sector since the opening of the market in the late 1990s, will remain valid for temporary equipment - such as rigging, platforms and support boats.

The special regime suspends the taxation of goods for offshore exploration and production imported or produced in the country (as long as they pass through a fictitious importation) and allows to equalize the conditions of competition of Brazil with other oil producing countries in which there is no taxation in the phase of Investments of projects.

In addition to the decree, the government has also issued a Provisional Measure creating a new tax regime for the sector, with definitive relief for permanent submarine equipment that will not be removed after the end of its useful life - such as Christmas trees.

Favorable to the sector, the Provisional Measure also discharged, among other points, LNG ships and chartered vessels.

The industry understands only that a necessary adjustment to the MP, which has a five year term, is to equal the exemption period to that of the decree - of 20 years.

"It was undoubtedly a major advance of the current government in maintaining the attractiveness and competitiveness of Brazilian industry, with the strategic view that oil can be one of the great drivers of the country's economic growth and job creation in the Years, "said Jorge Camargo, president of IBP.