The Brazilian government has enacted Law 15,075/2024, introducing significant changes to the regulation of local content and production sharing agreements in the oil and gas sector. Effective December 26, 2024, the law aims to boost investments and optimize the country’s exploration and production activities, according to Petrobras.
Petrobras to bring 10 new offshore production systems online by 2029 | OilNOW
Key provisions include:
- Local Content Surplus Transfer: Companies can now transfer local content surpluses among oil and gas exploration and production contracts, including those with no minimum local content requirements, such as “Round Zero” contracts.
- Reduced Royalties: The Executive Branch is authorized to lower royalty rates by up to 5% for “Round Zero” concession contracts, encouraging local content investments.
- Accelerated Depreciation: Differentiated quotas of accelerated depreciation are granted for tankers and maritime support vessels used in cabotage or offshore logistics, provided they are constructed in Brazilian shipyards.
- Extended Contracts: Production sharing agreements, including ongoing ones, can be extended if proven advantageous to the Federal Union.
- Cost Deduction for PPSA: Expenses incurred by Pré-Sal Petróleo S/A in managing production sharing and oil commercialization contracts can now be deducted from the Union’s commercialization expenses.
Petrobras boosts 2024 Capex to US$14.5 billion, focused on O&G expansion | OilNOW
Petrobras hailed the law as “an important milestone for the oil and gas sector in Brazil,” emphasizing its potential to foster investments and benefit the national industry.
