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Brazil's key sectors: oil and gas, power, mining, telecom, infrastructure and agribusiness finance, and the rules that govern them

Last verified: 2026-10-26 · Status: Changing

Brazil's investable sectors run on federal frameworks: concessions and production sharing for oil and gas, a power market opening to all consumers by 2028, a mining royalty set by substance, and concession and PPP laws for infrastructure and sanitation. Agriculture grew 11.7 percent in 2025 and oil output hit a record 3.770 million barrels a day, so energy and agribusiness lead the opportunity set. Each rule below is tied to the official text, with the government take or entry cost an investor should model.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.0377 per US dollar for 23 October 2026, the last business day before verification. Conversions are for orientation only.

Key facts

Average oil production in 2025 (record)	3.770 million bbl/dANP Boletim Mensal da Produção, consolidated 2025, as of 2025-12-31 · in force
Average natural gas production in 2025 (record)	179 million m3/dANP Boletim Mensal da Produção, consolidated 2025, as of 2025-12-31 · in force
Pre-salt share of national oil and gas output, oil equivalent, 2025	79.63 %ANP Boletim Mensal da Produção, consolidated 2025, as of 2025-12-31 · in force
Oil and gas royalty, concession regime	10 %Lei nº 9.478 art. 47, as of 2026-10-26 · in force
Minimum royalty the ANP may set in a concession bid	5 %Lei nº 9.478 art. 47 § 1, as of 2026-10-26 · in force
Oil and gas royalty, production sharing regime	15 %Lei nº 12.351 art. 42 § 1, as of 2026-10-26 · in force
Minimum Petrobras stake in a pre-salt block where it takes the operator preference	30 %Lei nº 12.351 art. 4 § 2, as of 2026-10-26 · in force
CFEM mining royalty on iron ore	3.5 %Lei nº 8.001 Annex, as of 2026-10-26 · in force
CFEM mining royalty on gold	1.5 %Lei nº 8.001 Annex, as of 2026-10-26 · in force
Maximum CFEM rate	4 %Lei nº 8.001 art. 2, as of 2026-10-26 · in force
Months to open the free power market to industrial and commercial low voltage consumers	24 monthsLei nº 9.074 art. 15 § 17 I a, as of 2025-11-24 · in force
Months to open the free power market to all other low voltage consumers	36 monthsLei nº 9.074 art. 15 § 17 I b, as of 2025-11-24 · in force
Minimum PPP contract value	10000000 BRLLei nº 11.079 art. 2 § 4 I, as of 2026-10-26 · in force
Maximum PPP term including extensions	35 yearsLei nº 11.079 art. 5 I, as of 2026-10-26 · in force
Drinking water coverage target by 31 December 2033	99 %Lei nº 11.445 art. 11-B, as of 2026-10-26 · in force
Sewage collection and treatment target by 31 December 2033	90 %Lei nº 11.445 art. 11-B, as of 2026-10-26 · in force
Agriculture value added growth in 2025	11.7 %IBGE Contas Nacionais Trimestrais, as of 2025-12-31 · in force
Agriculture share of gross value added at current prices, 2025	7.1 %IBGE Contas Nacionais Trimestrais, as of 2025-12-31 · in force
Extractive industries value added growth in 2025	8.6 %IBGE Contas Nacionais Trimestrais, as of 2025-12-31 · in force
Manufacturing share of gross value added at current prices, 2025	13.7 %IBGE Contas Nacionais Trimestrais, as of 2025-12-31 · in force

The rule

1. Oil and gas exploration and production outside the pre-salt and strategic areas is granted by concession contracts awarded through bidding. The concession contract sets the government take: signing bonus, royalties, special participation on large fields and an area retention fee. Royalties are 10 percent of oil or gas production, and the ANP may cut them in the bid notice to no less than 5 percent for high risk areas or other factors.
Cost to do it: Signing bonus set by each bid; in 2025 the 5th Concession Cycle of the Permanent Offer raised R$989.3 million (about US$196.4 million) in signing bonuses (ANP). Royalties 10 percent of production value, 5 percent floor.
Example: A concession field producing R$1,000,000,000 a year of oil pays R$100,000,000 in royalties at 10 percent, before special participation and income taxes. / About US$198.5 million of production, about US$19.9 million in royalties.Lei nº 9.478 (Petroleum Law), Arts. 23, 45 and 47 caput and § 1, 1997-08-06 official text · verified 2026-10-26

2. Pre-salt and strategic areas use production sharing. The contractor bears exploration risk and, on a commercial discovery, recovers cost oil and receives a share of profit oil. The Union contracts either directly with Petrobras or by auction, and the winner is the bidder offering the largest profit oil share to the Union. Since 2016 Petrobras is no longer the mandatory operator: the CNPE offers it a preference to operate, and if it accepts, its stake cannot be below 30 percent. Royalties are 15 percent of production value.
Cost to do it: Signing bonus fixed in the auction; the 3rd Production Sharing Cycle in 2025 raised R$103.7 million (about US$20.6 million) (ANP). Royalties 15 percent plus the profit oil share bid.
Example: On R$1,000,000,000 of pre-salt production, royalties are R$150,000,000, versus R$100,000,000 under a concession, before the profit oil split. / About US$29.8 million in royalties on about US$198.5 million of production.Lei nº 12.351 (production sharing), as amended by Lei nº 13.365 of 29 November 2016 and Lei nº 12.734 of 30 November 2012, Arts. 2, 4 § 2, 8, 18 and 42 § 1, 2010-12-22 official text · verified 2026-10-26 · changed: Lei nº 13.365 (29 November 2016) replaced Petrobras's mandatory operatorship with a preference right; Lei nº 12.734 (30 November 2012) fixed the 15 percent royalty.

3. Power: the Lei nº 15.269 reform orders the free electricity market, where consumers choose their supplier, opened to consumers connected below 2.3 kV within 24 months for industrial and commercial consumers and within 36 months for all others, counted from entry into force. The opening must be preceded by a consumer communication plan, separate tariffs for the free and regulated markets, rules for a supplier of last resort, a standard reference product and a charge for distributor over contracting.
Cost to do it: No entry fee is set by the law. Retail suppliers need ANEEL authorization; the regulatory rules listed in § 17 II are still to be issued by the regulators.Lei nº 9.074, as amended by Lei nº 15.269 of 24 November 2025, Lei nº 9.074 art. 15 § 17 and art. 15-C; Lei nº 15.269 art. 24 IV, 2025-11-24 official text · verified 2026-10-26 · changed: Lei nº 15.269 of 24 November 2025, in force on publication, set the 24 and 36 month schedule for low voltage free market opening and created the supplier of last resort.

4. Mining: holders of mining titles pay the CFEM royalty on gross sales revenue less taxes on the sale, at rates set by substance up to a 4 percent cap: 1 percent for construction aggregates, ornamental rock and mineral waters; 1.5 percent for gold; 2 percent for diamonds and other substances; 3 percent for bauxite, manganese, niobium and rock salt; 3.5 percent for iron ore, which the mining regulator may cut to as low as 2 percent on justified request.
Cost to do it: CFEM is a royalty on revenue, paid whether or not the mine is profitable.
Example: R$100,000,000 of iron ore sales net of sales taxes: CFEM R$3,500,000. The same base in gold: R$1,500,000. / About US$19.85 million of sales: about US$694,800 for iron ore, US$297,800 for gold.Lei nº 8.001, as amended by Lei nº 13.540 of 18 December 2017, Art. 2 caput and I, and Annex, 1990-03-13 official text · verified 2026-10-26

5. Telecom: concessions go only to companies or, since 2026, cooperatives incorporated under Brazilian law with head office and management in Brazil, formed to provide telecom services only. Services under the private regime, which covers most mobile and broadband, need prior authorization from Anatel. There is no foreign ownership ceiling in these articles: the test is local incorporation.Lei nº 9.472 (General Telecommunications Law), as amended by Lei nº 15.324 of 6 January 2026, Arts. 86 and 131, 1997-07-16 official text · verified 2026-10-26 · changed: Lei nº 15.324 of 6 January 2026 added cooperatives to the entities eligible for telecom concessions.

6. Public private partnerships: a PPP cannot be signed for a contract value below R$10,000,000 and must run between 5 and 35 years, extensions included, compatible with amortizing the investment.
Cost to do it: Minimum contract value R$10,000,000 (about US$1.99 million).
Example: A municipal street lighting PPP of R$9,000,000 is below the floor and must be structured as an ordinary concession or service contract instead. / About US$1.79 million, below the roughly US$1.99 million floor.Lei nº 11.079 (PPP Law), as amended by Lei nº 13.529 of 4 December 2017, Art. 2 § 4 I and art. 5 I, 2004-12-30 official text · verified 2026-10-26 · changed: Lei nº 13.529 of 4 December 2017 cut the minimum PPP contract value from R$20,000,000 to R$10,000,000.

7. Sanitation: water and sewage services by any entity outside the administration of the municipality or other holder require a concession contract after public bidding; program contracts and other precarious instruments are banned. Contracts must set targets of 99 percent of the population with drinking water and 90 percent with sewage collection and treatment by 31 December 2033.Lei nº 11.445, as amended by Lei nº 14.026 of 15 July 2020 (sanitation framework), Arts. 10 and 11-B, 2007-01-05 official text · verified 2026-10-26 · changed: Lei nº 14.026 of 15 July 2020 required bidding for private operators and set the 2033 universalization targets.

8. Agribusiness finance: the rural product note (CPR) can be issued by rural producers, cooperatives and first processors, and a CPR settled in cash may carry an exchange rate variation clause, with the National Monetary Council able to regulate it. Every CPR must be registered or deposited with an entity authorized by the Central Bank within 30 business days of issue to remain valid.
Cost to do it: Registration fees of the registry entity; real guarantees must also be recorded at the property registry to bind third parties (art. 12 § 2).Lei nº 8.929 (CPR Law), as amended by Lei nº 13.986 of 7 April 2020 and Lei nº 14.421 of 2022, Arts. 2, 4-A § 3 and 12, 1994-08-22 official text · verified 2026-10-26

Sector	Real growth 2025	Share of value added 2025
Agriculture	11.7 percent	7.1 percent
Industry, total	1.4 percent	23.4 percent
of which extractive (oil, gas, mining)	8.6 percent	3.7 percent
of which manufacturing	minus 0.2 percent	13.7 percent
Services	1.8 percent	69.5 percent
GDP	2.3 percent

Brazil's economy by sector in 2025: real growth and share of gross value added at current prices (IBGE, SIDRA tables 5932 and 1846). Shares computed from the four 2025 quarters.

Sector	Entry route	Main government take or condition	Rule
Oil and gas, outside pre-salt	Concession by bidding (ANP)	Signing bonus; 10 percent royalty, 5 percent floor; special participation	Lei nº 9.478 arts. 23, 45, 47
Oil and gas, pre-salt and strategic areas	Production sharing, auction or direct award to Petrobras	Largest profit oil share to the Union wins; 15 percent royalty; Petrobras operator preference with 30 percent minimum	Lei nº 12.351 arts. 4, 8, 18, 42
Power retail	Free market supplier choice, opening below 2.3 kV in 24 and 36 months	Regulatory preconditions in § 17 II	Lei nº 9.074 art. 15 § 17
Mining	Mining title to a Brazilian incorporated company	CFEM 1 to 3.5 percent of net sales by substance, 4 percent cap	Lei nº 8.001 art. 2 and Annex
Telecom	Concession or Anatel authorization; Brazilian incorporated company	Local incorporation, head office and management in Brazil	Lei nº 9.472 arts. 86, 131
Infrastructure PPPs	Public bidding	Contract at least R$10,000,000; 5 to 35 years	Lei nº 11.079 arts. 2, 5
Water and sewage	Concession after bidding	99 percent water and 90 percent sewage targets by 2033	Lei nº 11.445 arts. 10, 11-B

Sector regimes at a glance: who grants the right, the main government take and the governing law.

Worked example

Royalty comparison on the same R$1,000,000,000 (about US$198.5 million) of annual oil production: a concession block outside the pre-salt pays R$100,000,000 (about US$19.9 million) in royalties at 10 percent; a pre-salt block under production sharing pays R$150,000,000 (about US$29.8 million) at 15 percent and then splits profit oil with the Union at the share bid in the auction (Lei nº 9.478 art. 47; Lei nº 12.351 arts. 18 and 42).
Mining royalty on R$100,000,000 (about US$19.85 million) of sales net of sales taxes: iron ore R$3,500,000 (about US$694,800) at 3.5 percent; bauxite or niobium R$3,000,000 at 3 percent; gold R$1,500,000 (about US$297,800) at 1.5 percent (Lei nº 8.001 Annex).

Step by step

1. Identify the regime for the asset: concession, production sharing, authorization, mining title, PPP or sanitation concession. The table above maps each to its law.
2. Set up a Brazilian incorporated company with head office and management in Brazil where the sector law requires it (telecom concessions, mining titles), and complete the foreign investor registration and SCE-IED reporting described in Start here.
3. For oil and gas, follow the ANP Permanent Offer calendar: qualification of the bidder, bid on signing bonus or profit oil share, then contract signature. Model royalties at 10 or 15 percent from first production.
4. For mining, budget CFEM on revenue from first sale and check whether iron ore projects qualify for a reduced rate on justified request.
5. For infrastructure, check that the project value is at least R$10,000,000 and the term between 5 and 35 years before choosing the PPP route; for water and sewage, price the 2033 coverage targets into capex.
6. For agribusiness finance, register each CPR with a Central Bank authorized registry within 30 business days and record real guarantees at the property registry.
7. Track pending power sector regulation on free market opening, which conditions the 24 and 36 month schedule.

Common traps

Royalties on oil and minerals are charged on production or revenue, not profit: a field or mine with low margins still pays.
The power market opening schedule depends on regulations listed in Lei nº 9.074 art. 15 § 17 II; plan for the dates to move if those rules are late.
A CPR not registered within the deadline loses validity and effect under Lei nº 8.929 art. 12; guarantees not recorded at the property registry do not bind third parties.
Rural land and the 150 km border zone carry separate foreign ownership limits that hit agribusiness, mining and energy projects; see the Investing and Real estate pages.
Petrobras's pre-salt preference means a block may come with Petrobras as operator holding at least 30 percent, which shapes governance and partner choice.
Sanitation services cannot be awarded by program contract without bidding since Lei nº 14.026; legacy contracts are a diligence point in any water utility deal.

Sources

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