Change at Petrobras risks investments of US$7.65 billion

Two measures of Lula’s government are generating fear in the oil sector, especially for the independent companies, called junior oil companies, which have planned investments of R$40 billion (US$7.65 billion) until 2029, according to an estimate by the Brazilian Association of Independent Oil and Gas Producers (Abpip).

One of the measures is the return of the collection of the Oil Export Tax, at a rate of 9.2%, foreseen in the provisional measure that reintroduced taxes on some fuels.

The other is the suspension, announced by Petrobras earlier this month, of the sale of assets (including onshore and shallow water fields) for 90 days.

The government intends to reassess the National Energy Policy.

This sector, represented by the junior oils, has developed by exploring areas not attractive to Petrobras but represent an investment opportunity for the private sector.

Even without counting the impacts of the two measures, Abpip projects the generation of more than 300,000 jobs by developing exploration areas of the Southeast, Midwest, and Northeast regions.

There are prospects of tripling production in the coming years, some companies plan to acquire competitors, and others to go public.

“We may lose part of this growth if Petrobras decides not to sell its assets,” said the executive secretary of Abpip, Anabal Santos Junior, in an interview with the newspaper O Globo.

Among the companies operating in Brazil with planned investments of over R$100 million are PetroReconcavo, Enp Energy Platform, Origem Energia, Enauta, and Seacrest.

EnP intends to invest R$100 million starting in 2024 and may generate up to 1,000 jobs with the new operations in Espírito Santo and Bahia.

To O Globo, the company’s president, Marcio Félix, said that “the growth scenario is irreversible, but it is essential for the success of the independent companies and their positive effects on the Brazilian economy that Petrobras concludes the sale process of the operations underway”.

In addition to suspending sales, the companies are also concerned about the return of the Petroleum Export Tax, albeit temporarily.

“These are measures that bring insecurity to the sector,” said Giovani Loss, partner at the law firm Mattos Filho, to O Globo.

With information from Revista Oeste