Brazil - 01

Brazil: Oil Sector Reform Bill and Municipal Elections: Boosts for the Government’s Pro-Market Agenda

After months of delays, on 5 October the Chamber of Deputies finally approved the oil sector reform bill that drops the requirement that Petrobras operates and owns a 30% minimum stake in all pre-salt fields. The company, however, still retains the first-move priority to pick the fields it wishes to operate. The bill, which was originally devised by former senator and current Minister of Foreign Relations Jose Serra of the Brazilian Social Democracy Party (PSDB), was approved by a wide margin of 292 votes in favor and 101 votes against. Some MPs who voted against the bill wore orange jackets in a symbolic protest during the session, alluding to the official uniform of Petrobras workers. Despite the bill’s approval, lower house MPs will still discuss amendment proposals over the next week or so.

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