Brazil
783 Employees
not available at the time of publication
Main Business Activities
- Upstream
- Downstream
- New Energies
Shell has been active in Brazil since 1913 and has a mix of Upstream, Downstream and New Energies activities. The acquisition of BG Group in 2016 made Shell the largest international investor in Brazil´s conventional deep-water oil fields. In Downstream, we have a lubricants business and a 50% interest in Raízen, which manufactures sugarcane ethanol, and supplies and distributes fuels. Raízen is one of the world’s largest sugar-cane ethanol producers, responsible for more than 2 billion litres per year. In addition to the above tax, Raizen also had a tax charge of $250 million in corporate income tax.
Country Financial Analysis
Shell in Brazil reported a 2018 loss before tax, among others due to the unitisation of the Lula and Sapinhoa fields. However, for tax purposes, the Lula unitisation has not been recognised in 2018 as a deductible tax expense. Unitisation is mandated by Agência Nacional do Petróleo and is an agreement to develop jointly fields that extend across two or more licence areas, with each owner receiving an adjusted percentage interest in the combined unit. In 2018, this resulted in an adjustment to third-party revenues which contributed to the negative revenue of $138 million in the table above.
Despite these losses, Shell had a corporate income tax charge of $164 million.
Our Payments to Governments Report for 2018 also shows that Shell paid around $2.4 billion in royalties and fees.