Decommissioning has gained prominence in Brazil’s oil and gas sector, particularly given the maturity of producing fields. This process, which involves well abandonment, dismantling of facilities, and environmental remediation, requires substantial investment and is increasingly present on the regulatory agenda of the National Agency of Petroleum, Natural Gas, and Biofuels (ANP). Within this context, debate arises over the possibility of applying the Repetro-Sped regime to decommissioning operations.
Repetro-Sped is a special customs and tax regime that provides for suspension of federal taxes and certain ICMS benefits for goods destined for exploration, development, and production (E&P). The question is whether decommissioning — the final stage in the life cycle of a field — falls under the concept of “production” as provided for in the Petroleum Law (Law No. 9,478/1997).
Although the law does not expressly mention decommissioning, ANP’s own regulation and E&P contracts address the activity as part of the production cycle. The Development Plan (PD) must include costs and a timeline for the deactivation of facilities, and ANP Resolution No. 870/2022 allows for the deduction of well abandonment expenses when calculating special participation. These elements confirm that decommissioning is not ancillary, but rather intrinsically linked to production itself.
Accordingly, we contend that goods used specifically in decommissioning operations should benefit from the Repetro-Sped regime, through a systematic, teleological, and contractual interpretation, treating decommissioning as the final stage of the productive process.
Applying Repetro-Sped to decommissioning represents not only regulatory and normative coherence, but also a key incentive for the economic and environmental sustainability of the oil and gas industry. Recognizing decommissioning as an integral stage of production strengthens legal certainty and encourages proper planning for the end-of-life phase of offshore assets.
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