Brazil - 09

Brazil: Superior Electoral Tribunal Acquits Temer, but Further Challenges Loom

Temer was on trial for illegal campaign financing accusations that surfaced in 2014, when he was vice president during Dilma Rousseff’s presidency. But while the TSE acquittal is an important lifeline for Temer in his fight to keep the presidency, the trial was only one of several judicial threats that he must face in the

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Brazil: Oil Unions Call for Petrobras Resignations, Ending Truce

On 8 June the FUP – Brazil’s largest organization of oil unions – and a number of other leftist groups, such as the Main Workers’ Central (CUT) and the Landless Workers’ Movement (MST) protested in Rio de Janeiro against the “privatization” of Petrobras. They also called for Parente’s resignation as well as those of all

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Brazil: Oil Royalties Decision: Uncertainty Remains

The CNPE published two resolutions on 3 May that established directives for altering the reference price of oil, which is a key factor in the ANP’s royalty calculations. In contrast to previous disputes with the ANP, this time the CNPE recognized the competence of the ANP to make final decisions regarding the methodology. One resolution

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Brazil: Royalty Changes: Is a Decision Nearing?

According to a report published this week by daily newspaper Folha de Sao Paulo, the Brazilian government is considering the possibility of gradually implementing a revision of oil sector royalties. The measure would be some form of compromise aimed at ending a long-winded battle over current charges. Over the last year and a half, the

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Brazil: Parente Stays On as CEO: A Good Moment for Petrobras

Petrobras announced this week that CEO Pedro Parente’s tenure has been renewed for an additional two years to 2019. The decision was approved in a board meeting on 26 March. Parente took over as CEO in May 2016 following Aldemir Bendine’s resignation. Bendine, who had served as the head of the state-owned Banco do Brasil,

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Brazil: TCU Allows Petrobras to Continue Divestment Program

After several delays, the TCU announced its official decision last week to lift an injunction that had prohibited Petrobras from moving forward with its divestment program. Suspicions over the lack of transparency regarding the company’s asset sales had led the court to stop the program back in December. In order to continue with its divestments,

Brazil - 09

Brazil: Royalties Decision Postponed: Rising Tensions Between Rio de Janeiro and National Government

Earlier this month the ANP asked the STF to extend the deadline for the agency’s decision over a recalculation of oil sector royalties. In a ruling announced in December, STF Minister Luiz Fux had stipulated 1 March as the deadline for the ANP to issue a final decision on the matter. With the ANP’s new

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Brazil: Reduced Local Content Requirements: Potential Negative Reaction

After more than a year of intense debates, on 22 February the Ministry of Energy and Mines announced several changes to local content requirements in the oil sector. The new rules – which still must be approved by the National Energy Policy Council (CNPE), due to meet sometime in March – stipulate five broad segments

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Brazil: Petrobras’ Latest Injunction: Continued Legal Challenges at the Local Level

On 9 February a court in the northeastern state of Sergipe suspended yet another asset divestment by Petrobras, blocking the sale of the company’s subsidiary NTS, a network of gas pipelines covering the Southeast region of Brazil. The sale is one of the biggest in the company’s divestment portfolio, and the biggest so far to

Brazil - 09

Brazil: An Extra Bidding Round in 2017: The Government’s Eye on the Oil Sector

In a radio interview last week, Minister of Energy and Mines Fernando Bezerra Coelho Filho stated that the government is considering moving forward a 2018 pre-salt bidding round to November of this year. Coelho Filho did not give details of which pre-salt areas would be offered in the potential round, but he claimed that the