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Approved by Minister Flávio Dino, Agreement in the STF Ends 34-Year Dispute Over Maritime Boundaries and Petrobras Royalties, Defines Works for Santa Catarina as Compensation, with Duplication of 19 km on SC-417 and Three Overpasses in Garuva, 24-Month Deadline and Parallel Charge from São Paulo for R$ 1.186 million, According to Folha de S. Paulo
The Federal Supreme Court has ended a dispute that began in 1991 and determined that Paraná will finance works for Santa Catarina amounting to R$ 365 million. According to Folha de S. Paulo, the decision approved by Minister Flávio Dino links the compensation to the oil royalties improperly received by Paraná, following disputes over the maritime route between the two states.
The solution involves the duplication of 19 km of SC-417 and the construction of three overpasses in Garuva (SC), an area bordering Paraná. The approval was published on October 3, 2025, with a 24-month deadline for execution and specific questions from the minister regarding three clauses of the document, without preventing the agreement, as reported by Folha de S. Paulo.
What Was Decided and Who Pays
The agreement recognizes a debt of Paraná of R$ 273,630,394.85 to Santa Catarina, related to royalties from fields such as Tubarão, Estrela do Mar, Coral, Caravela, and Caravela do Sul.
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To settle the dispute and offset the amounts, the state commits to fund R$ 365,286,120.37 in works for Santa Catarina, amount exceeding the recognized liability.
According to Folha de S. Paulo, Governors Ratinho Junior (PSD) and Jorginho Mello (PL) signed the term submitted to the STF.
The difference between the debt and the total cost was presented as “additional voluntary contribution in infrastructure of common interest”.
In practice, Paraná pays the bill and enables interventions that benefit interstate flows, an argument used by both governments, as described by Folha de S. Paulo.
Where Will the Works Be and Why Are They Important to Both States
The package focuses on Garuva (SC), an axis connecting the coast of Santa Catarina to the Paraná access to Guaratuba and Caiobá.
Duplicating SC-417 and building three overpasses addresses traffic safety bottlenecks, tourism seasonality, and logistics flow.
According to Folha de S. Paulo, the choice of the section aims to maximize the regional effect.
For Paraná, there is indirect gain: thousands of residents from Paraná use the Santa Catarina network to access their own state’s coast.
For Santa Catarina, the works for Santa Catarina resolve a historical point of saturation at the border, impacting tourism, cargo, and mobility.
Why the Dispute Began and How It Evolved in the STF
The controversy dates back to a 1986 delineation made by the IBGE, whose maritime projection was challenged by Santa Catarina in the STF in 1991.
The crux: who had the right to the royalties from exploration areas near the maritime border.
In 2020, the STF determined a new boundary; in mid-2023, the line was approved by Minister Luís Roberto Barroso, then rapporteur.
From there, it was up to identify values and operationalize the compensation — a step culminating now in the approval of Minister Flávio Dino, as reported by Folha de S. Paulo.
How Much Is Left to Settle: São Paulo’s Charge
In addition to the settlement between Paraná and Santa Catarina, São Paulo demands R$ 1,186,516.47 (based on a historical credit of R$ 53,952.28, with updates and interest).
According to Folha de S. Paulo, Minister Flávio Dino gave 15 days for Paraná to respond on this point, and the São Paulo Attorney’s Office indicated interest in a consensual solution.
This development does not alter the schedule for the works for Santa Catarina, but keeps Paraná under scrutiny regarding residual liabilities linked to the same royalties dispute.
How and When: Deadlines, Values, and Oversight
The approved agreement sets 24 months for full compliance.
According to Folha de S. Paulo, the minister questioned three clauses, but validated the rest of the instrument, preserving the backbone of the adjustment.
From a budgetary perspective, the solution combines financial compensation with public works of immediate impact, avoiding direct cash transfers between entities and anchoring the settlement in measurable mobility benefits.
Efficient execution, with transparent costs and timelines, will be crucial to avoid amendments and ensure the definitive end of the dispute.
The STF ends a 34-year dispute with an arrangement that transforms contested royalties into works for Santa Catarina of regional effect, duplication of SC-417, three overpasses, and a deadline of 24 months.
Beyond the settlement, the decision reorganizes mobility at the border and signals a path for resolving conflicts federatively through results.
Do you agree that converting royalty liabilities into public works is the best solution? How should oversight of these deliveries be conducted, and what should be prioritized among critical sections of SC and PR? Does this change anything for summer visitors, truck drivers, and the cargo sector? Share your opinion in the comments — we want to hear from those living this experience.
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