IBP Positioning –IBAMA Mobilization
So far, the oil and gas sector has failed to collect around BRL 1 billion in taxes for states, municipalities, and the federal government due to IBAMA’s mobilization. It is important to understand IBAMA’s critical and strategic role in attracting investment, especially from abroad, for the country’s competitiveness. The mobilization has had a huge impact on the sector and jeopardizes Brazil’s socio-economic development and significant tax collection, which are essential for society.
The Brazilian Oil and Gas Institute (IBP), the main representative of the country’s oil and gas sector – which accounts for 10% of the country’s industrial GDP and is currently the second largest item on Brazil’s export list – calls for a satisfactory, short-term solution to be found to end IBAMA’s mobilization, which has been going on for more than 75 days and has affected important projects.
As a result of the mobilization, the sector failed to earn a total of BRL 3.4 billion in almost three months of stoppage. A total of BRL 650 million/month has also been lost due to delays in licensing.
Losses in tax collection (direct and indirect) amount to BRL 470 million/month (direct) and BRL 485 million/month (royalties and special participation taxes). Another negative impact is the 5,300 jobs that were not created.
In Brazil, for example, US$ 180 billion (around BRL 900 billion) are already scheduled to be invested over the next 10 years and there are plans to invest over BRL 100 billion in more than 20 new oil and gas production platforms by 2028, which may have their projects postponed.
The mobilization has caused delays, for example, in environmental licenses – preliminary, installation and operational ones – for ventures and projects in the oil and gas sector. There are even projects where the equipment has already been mobilized – such as drilling rigs and production platforms – awaiting the final licensing stage.
The impact in new exploratory areas
Furthermore, the mobilization could delay the licensing of new exploratory projects, an important element for the country’s sovereignty and energy security.
IBP stresses the importance of IBAMA and its work in licensing and monitoring activities in the oil and gas sector and insists that the government find an urgent solution as soon as possible.