Brazil - 09

Brazil: Royalties Decision Postponed: Rising Tensions Between Rio de Janeiro and National Government

Earlier this month the ANP asked the STF to extend the deadline for the agency’s decision over a recalculation of oil sector royalties. In a ruling announced in December, STF Minister Luiz Fux had stipulated 1 March as the deadline for the ANP to issue a final decision on the matter. With the ANP’s new request, however, its decision is now expected for April. Oil-producing states like Rio de Janeiro and Espirito Santo claim that the current formula to calculate oil royalties is outdated. The potential new formula under discussion would involve changing the oil price reference and increasing discounts on heavy oil (which is currently charged at a lower rate than light oil extraction).

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