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A good opportunity for the exploration of uranium may arise in Brazil in the next few years with theGovernment relaxing its monopoly for the research, mining, enrichment, reprocessing, industrializationand trade of this mineral.If approved the the National Congress, the relaxation of the uranium monopoly will generateopportunity for private investments, which can make Brazil become a global player in producing andtrading uranium.24. OIL & GAS24.1. The MonopolyLaw 2,004/1953 created a monopoly in the oil industry by providing that no activities related to the oilsector could be carried out other than by the federal government or state-owned companies. Thegranting of concessions or permissions to private companies was not allowed. This law also providedthat the National Oil Council (Conselho Nacional de Petróleo - CNP), created in 1938, would beresponsible for directing and supervising oil and gas exploration and production activities, and that themonopoly over oil activities would be exercised by a company created specifically for this purpose –Petróleo Brasileiro S.A (Petrobras), a government-controlled company.Years later, with the 1973 and 1979 oil crises, Petrobras was allowed to sign "risk contracts" – serviceagreements containing a risk clause – with foreign companies. This was an effort to reduce Brazil'sdependence on foreign oil and maintain a regular supply of fuel in the domestic market.24.2. Relaxation of the Monopoly and the Petroleum ActIn 1995, Constitutional Amendment 09/95 "relaxed" the federal government's monopoly, allowingoil and natural gas activities to be carried out not only by state-owned but also by privately-heldcompanies incorporated under Brazilian laws, with head office and management in Brazil, underagreements with the federal government. This opened the way for investments by Brazilian andforeign private companies.To regulate this "relaxation", a law known as the "Petroleum Act" (Law 9,478/1997) was enacted.It ratified the federal government's ownership of oil and natural gas reserves and regulated thenew concession regime introduced in Brazil. In fact, the Petroleum Act regulated Brazil's energypolicy, among other things, and established the legal framework that governs concessions toexplore, develop and produce oil and natural gas under public tenders and the legal frameworkthat governs authorizations to refine, process, transport, import and export oil, oil products andnatural gas.121