How Multinational Oil Companies Used a Think Tank to Support Operation Car Wash and Open the Pre-Salt Layer in Brazil

During the inauguration of the new president of Petrobras, Magda Chambriard, in June, Luís Inácio Lula da Silva wanted to send a message that the time of attacks on the state-owned oil company, with the aim of deregulation, was over.

“Under the false pretext of fighting corruption, Operation Lava Jato is actually aiming to dismantle and privatize Petrobras… I am back, just as Petrobras is back for the Brazilian people,” commented the Brazilian president. Lula is not entirely right about this.

While Lula implemented many changes, including unveiling Petrobras’ biggest spending plan since 2015, one important legacy of Operation Car Wash continues to this day: allowing foreign companies to take a leading role in the exploration of pre-salt oil fields off the Brazilian coast.

The Atlantic Council and the foreign oil companies that fund it

Petrobras is still the operator in most of the pre-salt contracts, but under a 2016 law, international oil companies can lead their own operations without the participation of the Brazilian state oil company.