WSB’s opinion – Petrobras: priority is over?

By Alexandre Vilela

A surprising turn in Brasília.

Brazil’s Senate has just approved, in first vote, a bill (PL 3178/2019) that could end Petrobras’ preferential rights in the pre-salt and allow greater flexibility between production sharing and concession models. Other discussions and votes yet to take place.

This happens in a Congress where both houses are currently under the influence of the PT-led government — of President Lula. One might expect stronger moves to reinforce Petrobras’ role. Instead, what we see is a potential opening of the market to broader competition.

Democracy shows its strength when decisions are debated in Congress — even when outcomes defy expectations.

If passed, this could mark a structural shift in how Brazil attracts investment to its upstream segment.

At WSB Advisors, we’ll be following closely — and so should anyone with eyes on the pre-salt.

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