Off the wire
• Canadian stocks up as inflation rate rises 1.5 pct  • Malaysia police arrests organizers ahead of large rallies  • Urgent: UN Security Council deeply alarmed by renewed ethnic violence in South Sudan  • Moderately powerful quake strikes off coast of Wakayama region, south of Osaka, no tsunami warning issued  • Former Rio governor found engaged in extensive money laundering since leaving office  • Spotlight: Chinese president's Ecuador visit opens up new era for bilateral ties  • Buenos Aires subway to become pet-friendly  • China, Ethiopia agree to further strengthen cooperation in capacity-building  • FLASH: M5.4 QUAKE STRIKES SOUTH OF JAPAN'S WAKAYAMA PREF:JMA  • 2nd LD Writethru: Chinese president arrives in Peru for APEC meeting, state visit  
You are here: 　 Home

Oil royalties down 29 pct in Brazil

Xinhua, November 19, 2016 Adjust font size:

Brazil's oil royalties have registered a 29-percent fall so far this year, local news portal G1 reported Friday.

Oil and natural gas regulation agency ANP showed that Brazil's royalties are falling for the second consecutive year, after a fall of 25 percent in 2005 from the previous year, according to G1.

The Brazilian Center for Infrastructure (CBIE) said that the Latin American country's oil royalties in 2016 are likely to be below 19 billion reais (5.6 billion U.S. dollars), the lowest since 2009.

Oil royalties fell mainly because of lower oil prices in the international market in recent months and the U.S. dollar devaluation against the Brazilian real.

Given Brazil's large oil reserves and the significant contribution of oil royalties to some states' income, the decrease in royalties directly affects the economic situation of the federal, state and local governments.

The state of Rio de Janeiro, in particular, is facing a serious financial crisis. The state is the largest oil producer in Brazil, having extensive reserves, mostly off-shore reserves. Its economy is largely dependent on the oil and gas industry. It is considering issuing oil royalties bond futures to ease the crisis. Endi