The Brazilian Supreme Court Confirmed the Agreement Between Paraná and Santa Catarina That Ends the Dispute Over Oil Royalties Begun in 1991. Payment Will Be Made in Works Valued at R$ 365 Million.
The Brazilian Supreme Court (STF) homologated a historic agreement between the states of Paraná and Santa Catarina, ending a dispute that had dragged on for more than three decades over the transfer of oil royalties from Petrobras. The decision was confirmed by Minister Flávio Dino, rapporteur of Civil Action (ACO) 444, and marks the conclusion of one of the longest federative conflicts in the country, as reported on Monday, 6th.
Officially signed in August, the agreement establishes that the settlement of the debt will be made through infrastructure works carried out by the Government of Paraná in Santa Catarina territory. The measure consolidates a model of cooperation between the two states and creates an unprecedented precedent within Brazilian federalism.
Works Will Replace Financial Payment and Strengthen Regional Integration
According to the terms approved by the STF, Paraná will carry out works in the municipalities of Garuva and Itapoá, on the border with Guaratuba (PR). The interventions include the duplication of 19 kilometers of SC-417, which connects BR-101 to the Southern Bypass of Garuva, in addition to the construction of three strategic bridges to improve vehicle flow in the region.
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The total investment value is estimated at R$ 365.3 million, with R$ 273.6 million referring to the judicial obligation and the remainder coming from voluntary contribution from the Government of Paraná, aimed at boosting the economic development of the Coast and reinforcing integration between the southern states.
In addition to these works, the package includes the duplication of PR-412, in the section between Guaratuba and the border with Santa Catarina, currently in the bidding process. This road interconnection is expected to strengthen tourism, facilitate cargo flow, and dynamize interstate trade.
Minister Flávio Dino Highlights Dialogue and Cooperation Between the States
Minister Flávio Dino emphasized that the agreement represents a milestone in federative cooperation. According to him, the governments of Paraná and Santa Catarina committed to maintaining constant dialogue to define values and execution timelines for the works. “It is a demonstration of institutional maturity and respect for the federative pact,” the magistrate stated when homologating the decision.
Along the same lines, the Attorney General of the State of Paraná, Luciano Borges, highlighted the unprecedented nature of the decision. “It is an unprecedented agreement within the Brazilian Federation, demonstrating a federalist character of cooperation between Paraná and Santa Catarina. Having the endorsement of the Supreme Court is certainly a victory for the State of Paraná,” he said.
Meanwhile, the general director of the State Attorney General’s Office (PGE), Lúcia Helena Cachoeira, classified the conclusion as “a historic precedent of extreme relevance, resolving a legal impasse of over 30 years.”
Understand the Origin of the Dispute Over Oil Royalties
The controversy between the states began in 1991, when Santa Catarina questioned, in the STF, the criteria used by IBGE for calculating the distribution of oil royalties. The state claimed that Paraná had improperly received part of the funds that should have been allocated to the territory of Santa Catarina.
The case went through nearly three decades until, in 2020, the Supreme Court ruled in favor of Santa Catarina, recognizing the inconsistency of the original calculations and paving the way for a definitive agreement. Since then, negotiations have evolved until the signing of the judicial transition term, consolidating the understanding between the parties.
Agreement Marks a New Moment in Federative Relations and in the Management of Royalties
With the decision, the STF reinforces the role of mediation between federative entities and encourages cooperative solutions in disputes involving strategic resources, such as oil royalties. In addition to ending a historic dispute, the agreement between Paraná and Santa Catarina symbolizes an important step toward institutional pacification and strengthening regional infrastructure in the south of the country.

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