Brazil
News

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

Bnamericas Published: Tuesday, November 29, 2022
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.

Subscribe to the most trusted business intelligence platform in Latin America. Let us show you our solutions for Suppliers, Contractors, Operators, Government, Legal, Financial and Insurance.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects in: Oil & Gas (Brazil)

Get critical information about thousands of Oil & Gas projects in Latin America: what stages they're in, capex, related companies, contacts and more.

Other companies in: Oil & Gas (Brazil)

Get critical information about thousands of Oil & Gas companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Scala Data Centers S.A.  (Scala Data Centers)
  • The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
  • Company: Petrogal Brasil, Ltda.  (Petrogal Brasil)
  • Petrogal Brasil Ltda. Is dedicated to the research, exploration, production, refining, transportation, distribution and commercialization of oil, derivatives and natural gas in ...
  • Company: Lupatech S.A.  (Lupatech)
  • Lupatech is a Brazilian supplier of products, services and integrated solutions for the oil and gas industry. The firm provides a wide range of products and services, from explo...
  • Company: Estaleiros do Brasil Ltda.  (EBR)
  • The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...