The new petroleum policy in Brazil

Abstract

This article examines the origins and evolution of the new Brazilian oil policy. The partial privatization of Petrobras and the implementation of the concession regime in the 1990s are described and analyzed. The pre-salt discoveries and their political consequences are discussed, including the new regulatory framework designed for exploration and production in strategic areas. The final section tackles the challenges and limitations posed by the new policy, including the financial and political pressures facing state-controlled Petrobras. The article concludes that the new oil policy has to be reformed should the government want to boost production within the pre-salt.