Firjan Petroleum - October 2019

14 Firjan PETROLEUM Government take is reward for increased social and environmental demand in the areas where the activity occurs. In these places, there is greater population concentration and risk of damage to the environment. Firjan: President: Eduardo Eugenio Gouvêa Vieira • 1 st Vice President: Carlos Mariani Bittencourt • 1 st Firjan CIRJ Vice President: Sérgio de Oliveira Duarte • 2 nd Firjan Vice President: Carlos Eduardo Gross • 2 nd Firjan CIRJ Vice President: Raul Eduardo David de Sanson. General Communication Management: Paola Scampini • Rita Fernandes • Gisele Domingues • Responsible journalist: Fernanda Portugal. Oil, Gas and Maritime Management: Karine Fragoso • Thiago Valejo • Renata van der Haagen • Fernando Montera • Heber Bispo • Iva Xavier • Priscila Felippe • Verônica França. Edited by Insight Comunicação: General Editor: Coriolano Gatto • Executive Editor: Silvia Noronha • Writing: Lais Napoli • Joana Ferreira • Juliane Oliveira • Review: Geraldo Pereira • Photography: Getty Images • Graphic Design: Paulo Felipe de Menezes Quintão (Firjan) • Design and Layout: Paula Barrenne • Graphic Producer: Ruy Saraiva • Printing: Imos Gráfica • Firjan: Avenida Graça Aranha, 1 - CEP 20030-002 - Rio de Janeiro. Tel.: (21) 2563-4455 • oil.gas@firjan.com.br • www.firjan.com.br/petroleoegas BUSINESS DID YOU KNOW? #For The Risks The Royalties The 1988 Brazilian Federal Constitution already provided that the ICMS taxation on petroleum and fuel derivatives should not be left to the producing regions as a means of distributing wealth throughout the country and offsetting the receipt of government take. Royalties also exist for water used for power generation and mining, for example, and will not be shared with non-producing regions. Royalties, special participation and signing bonuses are not taxes. These are compensations paid for the right to exploit, for a limited time, the oil and natural resources of a localized area in a particular state and city. The Union receives the largest amount of revenue from government take in oil and natural gas exploration. Between 2010 and 2018, the average population growth in the 25 largest municipalities producing oil and gas in Brazil was 16.7%, against 9.3% in the country. Should the distribution of royalties occur, producing states and municipalities immediately go into financial crisis without causing it. 54% IN 2018 Whom will suffer directly from possible environmental damage resulting from the activity is the producing region, with no impact on a region far from eventual leakage.