The Brazilian government last month released a long-anticipated plan for sharing oil royalties among states. However, congressional leaders have continued to struggle to broker a compromise with producer and nonproducer state governments, which are each threatening to challenge proposals they deem insufficient in court. The deal is a requirement to implement the government's new framework for exploration and production of the country's massive subsalt reserves. What are the main obstacles to reaching a deal? How likely is the government to reach an agreement before the end of the year? When is Brazil likely to be able to conduct a new bidding round for the pre-salt area?
Inter-American Dialogue's Latin American Energy Advisor. "How Will Brazil's Pre-Salt Regulatory Debate Turn Out?." (2011). http://digitalrepository.unm.edu/la_energy_dialog/91