Repsol Sinopec signals caution regarding the future of its investments in Brazil, citing the impact of dividend taxes and high tax burdens as barriers to competitiveness.
The complexity of the Brazilian fiscal landscape returned to the center of debates during ROG.e, an event hosted by the IBP in Rio de Janeiro. On Thursday (Sept. 24, 2026), Gilberta Lucchesi, Chief Financial Officer of Repsol Sinopec, warned of the risk of discouraging new oil and gas exploration and production projects in the country due to heavy tax pressure.
For the executive, the combination of a 34% domestic corporate tax rate and an additional 10% levy on dividends sent abroad—in effect since the beginning of 2026—creates an expensive environment. The company’s primary concern, as a joint venture between Spain’s Repsol and China’s Sinopec, is that shareholders may choose to allocate capital to international markets that offer more attractive and predictable profit margins.
Impacts on long-term stability
Lucchesi emphasized that there is no ideological opposition to taxing earnings, but argued that the government should evaluate the cumulative weight of taxes on corporate operations. In addition to the dividend tax, the executive pointed to the instability caused by measures such as the tax on crude oil exports, whose 12% rate continues to be renewed by Gecex, as factors that complicate long-term investment planning.
Commitment to the Raia project
Despite the criticism, Repsol Sinopec reaffirmed its commitment to ongoing projects, highlighting the Raia gas development located in the Campos Basin. With a total estimated investment of $9.2 billion, the company holds a 35% stake in the asset, representing an investment of approximately $3.2 billion.
The project, operated by Equinor in partnership with Petrobras, serves as a gauge for the need for legal certainty. According to Lucchesi, because the lifecycle of a project of this scale can span decades—from the auction in 2005 to the start of production, expected in 2028—the predictability of the tax regime is an asset just as essential as the technical and geological viability of the oil fields.
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