Debate on changing oil royalties distribution divides opinions

Two opinion pieces in Folha de S.Paulo debate whether Brazil's oil royalties distribution should change. Maricá's mayor advocates for reform to promote social justice, while CBIE directors argue the current model compensates local impacts and the issue lies in resource misuse.

The debate on oil royalties distribution featured prominently in opinion pieces published on January 30, 2026, in Folha de S.Paulo. Maricá's mayor, Quaquá (PT), president of the Brazilian Association of Municipalities (AMB) and national vice-president of the PT, advocates for change toward more equitable sharing with neighboring municipalities, through the lens of social justice.

Maricá received about R$ 3.8 billion in royalties in 2024, due to its 46 km of coastline facing offshore production areas, generating environmental and urban impacts compensated by ANP and IBGE criteria. The city invested in initiatives like the Mumbuca social currency, zero bus fares, University Passport for free higher education access, plus improvements in security, health, and urbanization. For the future, it created Maricá Global Invest and the Sovereign Fund, turning finite revenues into permanent investments.

Maricá's Municipal Human Development Index (IDH-M) grew 20.9% since 2000, reaching 0.765, above the national average, with 54.8% population growth in the 2022 Census, the highest in Rio de Janeiro state. In an agreement with Rio mayor Eduardo Paes (PSD), Maricá shared royalties with São Gonçalo, Guapimirim, and Magé, fostering regional development. 'Isolated prosperity is not sustainable,' the mayor states.

In opposition, directors of the Brazilian Infrastructure Center (CBIE) argue against change. They emphasize that royalties are not income sharing but compensation for impacts of a non-renewable resource, per the STF's 2005 ruling by Minister Eros Grau. The National Confederation of Municipalities (CNM) lawsuit in the STF, stalled since 2012, challenges concentration in cities like Maricá (R$ 24.5 thousand per capita, over five times the average), Niterói, and Campos dos Goytacazes.

They cite misuse examples, such as degrading infrastructure in Campos, R$ 12 million spent by Rio das Ostras on a porcelain boardwalk, and below-average investments in Saquarema. Niterói allocated only 5% of royalties to a sovereign fund, contrasting with Norway's US$ 2 trillion fund allowing just 3% annual use. 'The problem is not in the distribution model, but in the misuse of revenues,' they argue, suggesting more transparency and oversight instead of equal redistribution, which could spread irresponsibility.

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