Brazil Partners with S&P Global to Enhance Oil and Gas Royalties through Platts Benchmarks
- Brazil will use S&P Global's Platts benchmarks for oil and gas royalty calculations until at least 2035.
- S&P Global provides critical pricing references, supporting Brazil's oil production and economic framework.
- The partnership enhances S&P Global's reputation as a leader in commodity benchmarks amid global energy transitions.
### Brazil Strengthens Energy Ties with S&P Global for Oil and Gas Royalties
Brazil reaffirms its commitment to using Platts benchmarks from S&P Global Commodity Insights for calculating oil and gas royalty payments, marking a significant development in the nation’s energy sector. This decision, announced by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP), confirms a continuation of their partnership for a second consecutive time since 2020. The agreement, which will remain in place until at least 2035, underscores Brazil’s growing influence in the global oil market, especially as the country recently joined OPEC+, enhancing its role in energy security and sustainability.
S&P Global will provide a suite of pricing references, including the widely recognized Platts Dated Brent and several others, to assist Brazil in accurately calculating royalties based on the gross revenue of its oil and gas production. With Brazil producing approximately 3.6 million barrels of oil per day, the collaboration facilitates a reliable pricing mechanism essential for the nation’s economic framework. Jorge Jardim, S&P Global’s Vice President for Latin America, expresses pride in the partnership, emphasizing the need for independent pricing benchmarks amid Brazil's expanding energy landscape.
The renewed collaboration is particularly timely as Brazil prepares to host COP30, the UN climate summit. This event will draw international attention to the country’s energy policies and sustainability initiatives. By partnering with S&P Global, Brazil not only strengthens its domestic energy management practices but also positions itself as a leader in the global dialogue on sustainable energy practices. This strategic alliance reflects the importance of accurate pricing benchmarks in fostering transparent relationships between governments and the energy sector, thereby supporting Brazil's ambitions for a sustainable energy future.
### Broader Implications for S&P Global's Market Position
The ongoing partnership with Brazil reinforces S&P Global's status as a crucial provider of commodity benchmarks, enhancing its reputation in the energy sector. This collaboration allows S&P Global to further showcase its expertise in delivering independent and reliable market data, which is increasingly vital as countries seek to navigate complex energy transitions and climate commitments.
S&P Global’s relationship with Brazil exemplifies how strategic alliances can bolster both corporate objectives and national energy strategies. As the demand for reliable pricing references grows globally, S&P Global is well-positioned to extend its influence across various markets, ensuring that it remains a pivotal player in the evolving landscape of energy and commodities.
