Page 4 - LatAmOil Week 44 2022

LatAmOil COMMENTARY LatAmOil

(Photo: Twitter/@LulaOficial)
Petrobras heading for change

The state-owned company may change direction somewhat as a result of Brazil’s presidential election

BRAZIL’S national oil company (NOC) Petro- chance to do this.
bras has undergone some significant changes
WHAT: since Jair Bolsonaro, the incumbent president, Election results
Jair Bolsonaro, Brazil’s took office on January 1, 2019. Bolsonaro failed to secure re-election in the first
incumbent president, On the oil front, the NOC has defined its round of Brazil’s presidential election, which
has failed to secure core business as exploration and development took place on October 3, as he secured only
re-election. of large fields in the pre-salt section of Brazil’s 43.2% of all ballots. Since his main challenger
offshore zone. Consequently it has sold off many – the left-leaning Luiz Inacio Lula da Silva, a
WHY: of its non-core assets in order to concentrate on former president widely known as Lula who
Luiz Inacio Lula da Silva, the core. began campaigning earlier this year after being
the president-elect, has On the gas front, Petrobras has co-operated cleared of conviction on corruption charges in
a less market-oriented with the government’s decision to introduce 2017 – took 48.4%, Brazilian voters returned to
approach than his reforms breaking its monopoly on gas transpor- the polls on October 31 for a run-off.
predecessor.
tation, distribution and imports. Lula was generally favoured to win the sec-
WHAT NEXT: As far as the market-minded, right-leaning ond round of voting, as he had maintained a
The new administration Bolsonaro was concerned, these changes did not clear lead over the president for many months.
will push the NOC to go far enough, and one of the many reasons why However, Bolsonaro made good use of the extra
work more closely with the president was seeking re-election was in the time, and by October 31 he had significantly
the government than it hope of introducing even more reforms. (The narrowed the gap between himself and Lula.
has been doing in recent incumbent has said, for example, that he would Nevertheless, his efforts fell short in the end.
years, though there will like to privatise Petrobras, which is controlled According to the official count, Lula came out
probably not be whole- by the state.) victorious with 50.9% of all ballots cast, while
sale reversal of reforms. It appears, though, that he will not have the Bolsonaro took the other 49.1%.

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