Brazil's House Approves Creation of Petro-Sal

On Wednesday, November 18, 2009, the plenary session of the House of Representatives approved Draft Bill 5939/09, which created Petro-Sal by 250 votes to 67. The new state-owned company will manage all of the oil and gas exploration and production agreements in the pre-salt area under the new shared production model.

In an extraordinary session, the representatives voted the text's highlights in blocks. Two highlights were voted separately and rejected. The first forbids the hiring of temporary servants by the new company, while the second includes the requirement of holding hearings for all directors appointed to Petro-Salt in the text.

Bill speaker, representative Luiz Fernando Faria (PP-MG), maintained most of the original bill submitted by the Executive.

Now that it has been approved, the bill will be forwarded to the Senate for analysis and voting. Unlike the House, the Senate's statute require the text to be analyzed by several permanent commissions, not by a single special one.