Last week, ANP approved the first reduction in the royalty rate on the incremental production of a mature field, as provided for in ANP Resolution No. 749/2018. The incentive was granted to the Polvo field in the Campos Basin, operated by PetroRio, as part of the approval of the revision of the development plan.
The royalty rate will be reduced from 10% to 5% on the production volumes that exceed the reference curve due to new investments by the operator. The reference curve is the natural decline curve of the field in the case of no new investments.
In the case of Campo de Polvo, investments made in the well drilling campaign in 2018 resulted in an approximate 30% increase in oil production. In addition, the end of production, which was scheduled for December 2020, has been extended to 2030.
The measure aims to encourage investments in mature fields in order to increase competitiveness and maximize useful life and recovery factor.