Subsalt/Petrobras bills hit a welcome snag

Overview

The Lula administration is redoubling its efforts to pass its proposed subsalt legislation since Congress resumed its sessions on 2 February after the holiday recess. Our baseline scenario is that the lower house of Brazil's federal legislature will eventually pass the bulk of the government’s controversial subsalt proposals. But a divided Senate and the shortened congressional schedule this year ahead of the impending October elections will likely delay passage of the bills until...