On 27 September, Brazil’s government will hold its first major oil and natural gas rights auction in more than two years. The sale will be the first major test of investor interest in the industry following much-needed reforms to the country’s petroleum laws after more than a decade of increasing nationalist intervention.
For the embattled government of President Michel Temer, the auction is about more than just kick-starting a once-booming industry hobbled by low oil prices and the Car Wash corruption scandal. The oil industry is responsible for close to 15% of Brazil’s gross domestic product. Reviving its health is central to turning around the world’s seventh-largest economy as it strugg to get out of the crisis.