Lula's transition team seeks details of Petrobras divestments, pricing policy, strategic plan

The transition team for the energy sector of Brazil’s president-elect Luiz Inácio Lula da Silva held its first meeting with national oil company Petrobras on Monday. 

Details of the state-run firm’s divestments, pricing policy and strategic plan were requested, a source close to the matter told BNamericas. 

“We’re requesting the interruption of the divestments until we can analyze the situation,” the source said. 

Among the assets for sale are four refineries: Abreu e Lima (Rnest), Presidente Getúlio Vargas (Repar), Alberto Pasqualini (Refap) and Gabriel Passos (Regap). 

With a more state-centric view than the current federal administration, Lula is in favor of keeping Petrobras’ dominance of the downstream segment and of expanding refining capacity. 

Meanwhile, the incoming president is expected to modify Petrobras’ fuel pricing policy (PPI), which is based on international oil prices and the exchange rate.

Lula’s idea is to create regional benchmarks that consider local prices and the cost of imports. Such a plan could reduce the appetite of private players that are used to market prices. 

The president-elect, who takes office January 1, is also likely to increase Petrobras’ renewable energy and biofuels project portfolios, which were significantly diminished in recent years. 

Petrobras CEO Caio Paes de Andrade, director of institutional relations and sustainability, Rafael Chaves, director of governance and compliance, Salvador Dahan, and the company’s lead attorney Taisa Maciel attended the meeting. 

On behalf of the transition team, senator Jean Paul Prates and professor Mauricio Tolmasquim were present along with other members of the group, as well as representatives from the mines and energy ministry (MME) and the chief of staff’s office.

According to Petrobras, the first steps for a professional transition following good governance rules were established at the meeting. 

“Petrobras made itself available to provide all the necessary information for the transition team to complete a first diagnosis that should support the next management,” the NOC said in a statement.