Multinationals are set to take the lead in the 11th round, yet struggling Brazilian companies could also benefit. There are some hints that local content rules could be revised in future.

Fuel hikes, limits to trucker working hours and heavy rains have led costs to escalate.

As expected, congress has voted overwhelmingly to reject a presidential veto, and to distribute royalties from existing oil concessions more equally between states.

The 4Q results have made a impact on debate in Brazil, leading to a strong consensus that the state-controlled oil company is overburdened and underfinanced.

Increased royalties and new local content requirements are under discussion in Brasília. The process echoes the complexities in reforming oil royalties, although we see several factors pointing to a smoother resolution.

4Q results reiterate the oil company’s weakness, but also show that Graças Foster’s efficiency moves have made an impact

Despite poor results, industry executives still believe that benefits will flow from the reshaping of oil company. Suppliers are feeling increasingly squeezed.

Ever since Petrobras embarked on its controversial capital-raising exercise of 2010 a sense of malaise has surrounded the state-controlled oil company’s relations with investors. The company’s operating performance has been sluggish at best and its shares have sunk so badly that they contributed in large part to the dreadful recent performance of the broader equity market.