Eduardo G. Pereira

Protection against Default in Long Term Petroleum Joint Ventures

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The Brazilian pre-salt case: governmental interference and challenges for potential joint ventures

The exploration of the so-called ‘pre-salt area’ of offshore Brazil under a specific production sharing regime is relatively new and brought about several changes in the Brazilian oil and gas regulatory framework as opposed to the system originally based on the concession regime. This paper presents a brief background of the Brazilian oil and gas industry, notably with respect to the changing process that introduced the new production sharing regime, and analyses the details involving the interferences from the Brazilian governmental authorities in the industrys activities and the implications for joint ventures intending to be involved with these activities.