Abstract: With the great finding of Lula, which proved high potential of resource in pre-salt, Brazil government have adjusted the strategy to focus on the core assets in pre-salt area and conduct the new Production Sharing Contract.The economy recession and corruption scandal since 2015 pushed the government to offer better fiscal terms, in order to attract international investors.Removing Petrobras’ obligation to operate all new pre-salt area and minimum 30% of working interest requirement, extending the REPETRO regime for another 20 years, reducing the requirement of Local Content, all these improvements stimulate the success of bidding round in 2017 for offshore exploration blocks.Based on comparison of contract model, it shows that the government takes higher percentage from Production Sharing Contract, which means tighter control of the core assets in pre-salt area.With the study of Local Content and indirect tax regime, it is concluded that procurement strategy, Local Content and indirect tax planning are highly related with each other.And we finally propose reasonable suggestions for the bidding, M&A and operation of O&G projects in Brazil for Chinese oil company.