The three offshore licensing rounds that Brazil is planning to hold in the second half of 2017 could face delay after explosive press revelations apparently implicated President Michel Temer directly in high-level corruption schemes.

“I think there is a strong chance that the licensing rounds will be suspended because the government has lost all legitimacy,” said Jean Paul Prates, head of CERNE, an energy sector think tank in Brazil.

The latest chapter in Brazil’s infamous “Car Wash” probe came with reported recordings suggesting that Temer had approved payments intended to buy the silence of imprisoned former congressional leader Eduardo Cunha, according to O Globo newspaper..