Latin America's Largest Market, Brazil, Awards Platts Dated Brent and Nine Other Platts Benchmarks as the Basis of its Royalty Calculations

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S&P Global (NYSE:SPGI) has announced that Brazil's National Agency of Petroleum (ANP) has selected Platts benchmarks as the pricing reference for calculating the nation's oil and gas royalty payments through 2035. This marks the second consecutive commitment following the 2020 award.

The agreement includes ten Platts pricing references, with Platts Dated Brent as the key oil reference, along with nine other benchmarks for various energy products. Brazil, producing 3.6 million barrels per day of crude oil, is Latin America's largest oil producer and among the world's top ten producers. The country recently joined OPEC+ and will host COP30 in November.

Insights

Business Strategy Analyst

S&P Global secures 10-year benchmark contract with Brazil's oil regulator, reinforcing market leadership and long-term revenue stability.

This contract renewal represents a significant strategic win for S&P Global Commodity Insights. Brazil's decision to continue using Platts benchmarks for oil and gas royalty calculations until at least 2035 provides exceptional revenue visibility and stability for the next decade. The expanded agreement now encompasses ten different Platts benchmarks, suggesting deeper market penetration within Brazil's regulatory framework.

The importance of this deal is magnified by Brazil's position as Latin America's largest oil producer (3.6 million barrels daily) and its recent entry into OPEC+. This partnership extension cements S&P Global's influential position in a top-ten global oil producing nation during a critical period of energy transition, particularly as Brazil prepares to host COP30.

What makes this especially valuable is the regulatory entrenchment it creates. By serving as the official benchmark for government royalty calculations, Platts further solidifies its position as the de facto standard in the industry. This creates substantial competitive moats and reinforces S&P Global's pricing power in its benchmark business.

For investors, this agreement provides exceptional forward visibility for the Commodity Insights segment revenue. The contract's decade-long duration largely insulates this revenue stream from competitive pressures and creates predictable cash flows from a major market. This type of government endorsement also strengthens S&P Global's ability to secure similar arrangements in other jurisdictions, as noted by the mention of "dozens of countries" already using their benchmarks for official purposes.

LONDON and NEW YORK and SINGAPORE and SÃO PAULO, July 22, 2025 /PRNewswire/ -- Latin America's largest market, Brazil, has again awarded the benchmarks of Platts, part of S&P Global Commodity Insights, as the pricing reference in its calculations of the nation's oil and gas royalty payments on the gross revenue of producing fields. This is the second consecutive commitment by Brazilian National Agency of Petroleum, Natural Gas and Biofuels (Portuguese: Agência Nacional do Petróleo, Gás Natural e Biocombustíveis – ANP), the government agency responsible for the regulation of Brazil's oil sector, after its 2020 award, to utilize the Platts benchmarks in its calculations under its current open bidding process and will maintain the key reference position for Platts until at least 2035. 

S&P Global Commodity Insights is the leading independent provider of information, analytics and benchmark prices for the commodities, energy and energy transition markets.

"We're pleased and honored that such an important energy economy as Brazil recognizes the value of our independence and the trust we've earned in the marketplace as a provider of pricing benchmarks and will utilize not only Platts Dated Brent as its key oil reference, but nine other Platts pricing references as it calculates values for royalties payments on the products refined from its crude production," said Jorge Jardim, Vice President, Commercial, Latin America, S&P Global Commodity Insights. "We are committed to meeting the price assessment needs of Brazil and greater Latin and South America region." 

Earlier this month, Brazil's ANP signed an agreement to formalize the continuation of its partnership with S&P Global Commodity Insights.

The Platts spot market price assessments to be utilized:

• Platts Dated Brent
• Platts Sulfur De-escalator
• Platts Gasoline 10 ppm
• Platts ULSD 10 ppm
• Platts Fuel Oil 3.5%
• Platts Propane Mt Belvieu LST Pipe Mo01
• Platts Butane Mt Belvieu LST Pipe Mo01
• Platts Natural Gasoline Mt Belvieu LST pipe
• Platts Henry Hub FDT
• Platts FOB Rotterdam Marine Fuel 0.5% barge

Brazil is the largest oil producer in the Latin America region with 3.6 million barrels per day of crude oil production, according to S&P Global Commodity Insights analysts, and is among the top ten producers in the world. It is a central player to energy security as well as energy transition and sustainability. Earlier this year, Brazil joined OPEC+, a group of major oil-exporting nations, and in November will host the United Nations' annual climate summit, COP30.

Platts for at least two decades has served as a key benchmark provider to the Brazilian government. In addition to Brazil, Platts benchmark reference prices are currently being used by dozens of countries around the world in various type of government fees, royalties, tax and other calculations.

With its history as a valued benchmark provider and bringing transparency to markets through its creation of trusted price assessment methodologies, Platts has published price assessments and benchmarks in energy for more than a century, which over time has extended into metals, chemicals, agriculture, energy transition and other commodities as markets have evolved.

For more information about Platts price assessments, access this link.   

Media Contacts: 
Americas: Kathleen Tanzy + 1 917-331-4607, kathleen.tanzy@spglobal.com
Asia: Melissa Tan + 65-6597-6241, melissa.tan@spglobal.com  

About S&P Global Commodity Insights
At S&P Global Commodity Insights, our complete view of global energy and commodity markets enables our customers to make decisions with conviction and create long-term, sustainable value. 

We're a trusted connector that brings together thought leaders, market participants, governments, and regulators and we create solutions that lead to progress. Vital to navigating commodity markets, our coverage includes oil and gas, power, chemicals, metals, agriculture, shipping and energy transition. Platts^® products and services, including leading benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights. S&P Global Commodity Insights maintains clear structural and operational separation between its price assessment activities and the other activities carried out by S&P Global Commodity Insights and the other business divisions of S&P Global. 

S&P Global Commodity Insights is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information visit https://www.spglobal.com/commodityinsights.

©2024 by S&P Global Commodity Insights, a division of S&P Global Inc.

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SOURCE S&P Global Commodity Insights

FAQ

What benchmarks did Brazil select for oil royalty calculations?

Brazil selected Platts Dated Brent as the key oil reference, along with nine other Platts pricing references including Platts Sulfur De-escalator, Gasoline 10 ppm, ULSD 10 ppm, and others for royalty calculations.

How long will S&P Global's Platts benchmarks be used for Brazil's royalty calculations?

The Platts benchmarks will maintain their key reference position for Brazil's oil and gas royalty calculations until at least 2035.

What is Brazil's current oil production capacity according to S&P Global?

According to S&P Global Commodity Insights analysts, Brazil produces 3.6 million barrels per day of crude oil, making it the largest oil producer in Latin America and among the top ten producers globally.

How does this agreement impact S&P Global's position in Brazil?

This agreement reinforces S&P Global's position as a trusted benchmark provider in Brazil, extending a partnership that has lasted for at least two decades and strengthening its role in government royalty calculations.

What is the significance of Brazil in the global energy market?

Brazil is a central player in energy security and transition, being Latin America's largest oil producer, a recent OPEC+ member, and the upcoming host of COP30 climate summit.