STJ Overturns R$1.48 Billion Petrobras Ruling, Orders New Trial in Paragon Case

Overview

• The STJ’s 3rd Panel annulled a roughly US$275 million (about R$1.48 billion) condemnation against Petrobras and sent the case back to the TJRJ for a new hearing.
• Ministers granted Petrobras’s appeal by majority, with relator Moura Ribeiro citing noncompliance with the rule to summon judges from the immediately superior chamber in a non‑unanimous decision.
• The decision is procedural and does not address the merits of Paragon Offshore Nederland’s claim tied to alleged early termination of drilling‑rig charter contracts.
• Petrobras reported an estimated exposure of R$2.9 billion for the dispute, of which R$154 million is provisioned and the rest is classified as a possible loss.
• The case will be retried by a correctly constituted panel at the Rio court, and the outcome could influence Petrobras’s financial reporting.