Petrobras and the new regulatory framework for the exploration and production of oil and natural gas in the Brazilian Pre-salt region

Petrobras was created in 1953 to undertake the activities of the exploration, production, refining, transportation and marketing of oil and its derivatives, on behalf of the Federal Union. During the 1990s some changes were made to the state monopoly of oil in Brazil. Now, almost 60 years after the incorporation of Petrobras, the Brazilian oil industry is facing a special moment, marked by the discovery of massive accumulations of hydrocarbons on the Brazilian coast, known as the Pre-Salt area. This discovery prompted an important discussion on the need for change in the then existing legal system for exploration and production of oil and gas. This article aims to give an historical perspective of Petrobras and also to analyze its role in this new regulatory scenario, mainly in the award of onerous assignment contracts, as well as its future tasks under the production sharing agreements.