Brazil's pre-salt is among the most high-profile deepwater plays in the world. Since the first pre-salt discovery – Lula, made by Petrobras in 2006 – other discoveries have added 26 bnboe to the country’s resource base. Today, the pre-salt output corresponds to 70% of Brazil’s total liquid production. Despite the excellent track record, more recent results have been disappointing. Several high-profile pre-salt well failures have left explorers wondering about the region’s future prospectivity. In this report we provide an overview of what makes the pre-salt work, how we see the technical risks and how commercial risk exposure could be reduced through improved terms.