Since 1997, Brazil’s O&G industry has invested USD 4 billion in 10 thousand different R&D projects.
Local rules force oil producers to invest in R&D at least 1% of gross revenues from the so-called highly productive fields. The research and development tax is known locally as the R&D Levy.
At least 50% of such R&D funds must be channeled through accredited institutions (dedicated research entities) and universities; the remaining can be used internally by operators and on companies and startups.
As a general rule only companies established in Brazil (including subsidiaries of international companies) can tap into the ANP R&D Levy pot.
After successful oil auctions in 2017, attracting oil majors such as ExxonMobil, Shell and Total, the R&D obligations are only set to increase and, to some extent, diversify away from Petrobras/Cenpes, which still dominates the R&D scene.