Country Report

Brazil upstream summary

01 February 2018

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01 February 2018

Brazil upstream summary

Report summary

Brazil is one of the world's pre-eminent hydrocarbon countries. The combination of world-class exploration success in its deepwater basins and the fact that it remains open to private investment attracts the attention of the world's largest E&P companies, although state oil company Petrobras remains the principal player.The pre-salt discoveries of 2006, particularly in the Santos basin, propelled the country into the limelight following several years of disappointing production. ...

Executive summary
Key facts
Location maps
Key companies
Geology
- Introduction
- Coastal basins
  - Foz do Amazonas-Marajó basin
  - Pará-Maranhão basin
  - Barreirinhas basin
  - Piaui-Ceará and Potiguar basins
  - Pernambuco-Parnaiba basin
  - Sergipe-Alagoas basin
  - Recôncavo and Tucano basins
  - Bahia Norte and Bahia Sul basins
  - Espírito Santo basin
  - Campos basin
  - Santos basin
  - Pelotas basin
- Inland basins
  - Amazonas basin
  - Solimões basin
  - São Francisco basin
  - Parnaíba basin
Exploration
- Licensing
- Access opportunities
- Early years
- Risk contracts
- Petrobras' monopoly ends
  - Round Zero
- ANP licensing rounds
  - Concession Rounds
  - Production Sharing Contract (PSC) Rounds
  - Marginal Fields Round and areas on permanent offer
- Petrobras-offered opportunities
- Drilling
  - Drilling activity
  - The onshore years
  - The emergence of the Campos basin
  - Pre-salt discoveries
  - Equatorial margin potential
  - Atlantic margin discoveries
  - Espírito Santo basin
  - Success rates
Reserves and resources
- Oil and condensate
- Gas
Production
- Oil and other liquids
- Gas
Infrastructure
- Oil infrastructure
  - Pipelines
  - Refineries
- Gas infrastructure
  - Domestic pipelines
  - International pipelines and terminals
Policy and regulation
- Key legislation
  - Current system
  - Pre-salt legislation
- Regulatory body
  - The ANP
  - Pré-Sal Petróleo S.A. (PPSA)
- State oil company
- State participation
- Licensing
  - Historical perspective
  - Current concession regime
  - Transfer of Rights (TOR) agreement
  - Production sharing contract (PSC) regime
- Gas Prices
  - Historic pricing (pre-2002)
  - Price deregulation (post-2002)
  - Reference gas prices
  - Transportation tariffs
- Liquids prices
  - Pricing
- Domestic Market Obligation (DMO)
Fiscal terms
- Overview
- Current fiscal terms
- Concession regime
  - Royalty
  - Landowner override
  - Research and development obligation
  - Export duty
  - Signature bonuses
  - Area rentals
  - Training fees
  - Special Participation Tax (SPT)
- Production sharing contract (PSC) regime
  - Operator
  - Contract duration
  - Royalty
  - Cost oil
  - Profit oil
- Indirect taxes
  - Import duties (I.I. and IPI)
  - State Value Added Tax (ICMS)
  - CIDE
  - Withholding tax on subcontractor income
  - Municipal Service Tax (ISS)
  - PIS and COFINS
  - Tax on Financial Transactions (IOF) (previously the Financial Transaction Tax, CPMF)
  - REPETRO
- Corporate income tax
  - Tax rate
  - Taxable income
  - Investment uplift/credit
  - Loss carry forward
  - Ring fences
- Marginal government take calculation