PRIO gets reduced royalties in Tubarão Martelo

29 Jul 2021

On July 29, the ANP approved the Integrated Development Plan for the cluster composed of the Octopus and Tubarão Martelo fields.

With the approval of the new plan, all the incremental production that will come from new investments will have its rate reduced from 10% to 5%, including the production resulting from the completion of well TBMT-10HP, expected to start production in September.

The Development Plan contains the investment commitments, production estimates, and the economic analysis of the joint redevelopment project for the fields.

Tie-back: reduction of royalties and extension of the useful life of Tubarão Martelo

Although the tie-back had already been authorized, it is the Development Plan that governs the obligations of the concessionaire to the Agency and that served as the basis for the reduction in the royalty rate of Tubarão Martelo.

“The reduction of royalties on incremental production reinforces PRIO’s commitment to work for the regulatory evolution of the sector, having been the first operator in history to obtain the benefit in the ANP (Polvo, 2020). With this approval, the incremental production of both fields of the cluster count with the reduction of royalties and the expertise obtained in Polvo was fundamental to achieve this goal,” says the Director of HR, Regulation and Legal of PRIO, Emiliano Fernandes.

The reduction allows the allocation of about R$ 130 million in new investment opportunities, including in the cluster itself.

For PRIO, as the tie-back project makes it possible to extend the useful life of Tubarão Martelo by more than 10 years, the return that obtaining this measure provides for the Union, States and Municipalities should be highlighted, as it allows for an additional collection of royalties in excess of 700 million reais until its decommissioning.