The Oil & Gas Working Group is a committee of over 30 companies, primarily from the United States, representing the entire production chain: exploration and production companies; manufacturing; and diverse services from drilling to offshore maritime support.
The Council recognizes the importance of the oil and gas sector for trade and investment between Brazil and the U.S. to drive economic growth and advance the bilateral relationship. The Council recommends numerous actions:
- Encourage the Brazilian federal, state, and municipal governments to streamline the environmental licensing process, adopting clear criteria to avoid unnecessary risks, significant delays, and uncertainty for investors.
- Support more discretion for companies with respect to the Brazil’s National Petroleum Agency’s (ANP’s) requirement that they invest in Research, Development, and Innovation (PD&I) with accredited universities or national research and development institutions.
- Support the Brazilian government’s Gas to Grow initiative to adapt the natural gas sector’s activities to the new market and promote the opening of the market to foreign and national private investors. Focus on these areas:
- Adoption of good international practices.
- Investment attraction.
- Increased competition.
- Diversity of agents.
- Access to information.
- Active participation of sector in the regulatory process.|
- Promote the most effective way to develop the Brazilian Pre-Salt reserves is to allow private investors of any origin to operate projects with up to 100% participation in the investment.
- Support renewal of the Special Customs Regime for exportation and importation of oil and gas products (REPETRO) in Brazil, enabling the reduction of the tax burden for a more cost-effective exploration and production of oil and gas.
- Object to two initiatives of the state of Rio de Janeiro, which create an environmental monitoring tax (Taxa de Controle, Monitoramento e Fiscalização Ambiental das Atividades de Pesquisa, Lavra, Exploração e Produção de Petróleo e Gás – TFPG) and a value-added tax (Imposto sobre Circulação de Mercadorias e Serviços-ICMS) on the oil and natural gas sectors.
- Support efforts to improve clarity on the norms regarding unitization in Brazil via the National Council of Energy Policy (CNPE) Resolution.
- Recommend that the Brazilian government continues its practice of organizing regular oil bidding rounds to secure domestic and foreign investment as well as a continuous stream of royalties.
- Urge the adoption of a more flexible approach to local content requirements in Brazil to better accommodate rapid innovation and gaps in the local supply.
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