Regulatory News

The oil producing states got their first victory in court in the dispute over royalties. Minister Carmen Lúcia of the Federal Supreme Court (STF) ordered the suspension of the new distribution system which had been approved by Congress. The decision is provisional and must be voted on by other members of the STF which should only happen after Easter.

The minister agreed with the arguments presented by the government of Rio de Janeiro that it is unconstitutional to change the division of royalties for field exploration contracts already procured. The states of Espírito Santo and São Paulo also filed an appeal in the Supreme Court to bar changes made by parliamentarians.

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