Ilhabela tries to receive all oil royalties – 03/05/2023 – Panel SA

The idyllic Ilhabela, on the coast of São Paulo, awaits judgment by the TRF-3 (Federal Regional Court) in this (4) case to fatten the city hall’s cash by at least R$ 1 billion.

In 2020, the city hall of the island filed a lawsuit questioning the IBGE review that included São Sebastião and Caraguatatuba in the list of cities entitled to access resources from oil exploration in the region.

In addition to the IBGE and the coastal cities, Ilhabela also included the ANP (National Petroleum Agency) as a defendant in the process.

The money that belongs to São Sebastião and is blocked in court is pointed out by Mayor Felipe Augusto (PSDB) as essential to help rebuild the city, devastated by the February storms.

He estimates that R$ 600 million in works are needed to recover the damage.

In November 2021, Ilhabela’s action was dismissed by the lower court. In the decision, Justice stated that the concentration of 100% of royalties from oil exploration in the region by Ilhabela was disproportionate. The municipality appealed.

At the end of last year, the Minister of the STF, Rosa Weber, determined that the disputed amount in court be deposited in court until a final decision is reached.

According to lawyers involved in the process, if he loses one more decision this Thursday, Ilhabela must follow the appeal chain and play the discussion until the last instance of the Supreme Court.

The case is one more that adds to the dispute over the distribution of oil royalties in Brazil. To date, more than a hundred municipalities have taken the issue to court, all trying to increase profit sharing.

With Diego Felix

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