Page 12 - LatAmOil Week 08 2021

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Since then, he has won accolades for bring- out against Castello Branco’s market-oriented
ing production up and leading the company plan to raise prices and has argued that fuel price
through the fallout from the coronavirus increases should not be introduced in ways that
(COVID-19) pandemic. He appears to have surprise consumers. Luna too has spoken about
won the loyalty of the company’s leaders, many the need to take social factors into account when
of who are reportedly prepared to quit to protest considering truck drivers’ complaints about fuel
over his firing. The NOC’s senior management prices.
team is considering the possibility of resigning According to Sergio Goldenstein, a former
en masse in response to his replacement with central bank director now serving as a consult-
Luna, three sources close to Petrobras executives ant at OHMResearch, these developments may
told Reuters earlier this week. indicate that Bolsonaro’s outlook is changing.
The government announced plans for the “The president has chosen economic populism,”
personnel shift shortly after Castello Branco he was quoted as saying by Bloomberg earlier
fell into a dispute with Bolsonaro over domes- this week. “Positions against fiscal equilibrium,
tic fuel prices. The former has been saying that favouring of certain groups and now, aggres-
prices for diesel and other refined petroleum sively interfering at a publicly traded, state-run
products ought to be raised, in light of the weak- company – the recent signals are really bad.”
ening of Brazil’s national currency and the rise Goldenstein was not the only party to raise
in the price of crude oil. However, the latter has questions about what the personnel changes
expressed concern about higher fuel prices and might mean for Petrobras. Eight investment
has described some recent increases as exces- banks cut their ratings for the NOC’s shares
sive. He appears to be most concerned about after the announcement of Castello Branco’s
the possibility that truck drivers might strike if dismissal, saying they were concerned about the
diesel prices move upwards too quickly. possibility that the company might move away
The president has a reputation for favouring from market-oriented strategies and the poten-
market-oriented policies. However, he has come tial for more state interference. ™

Enauta resumes production at Atlanta

BRAZILIAN independent Enauta Participações to repair the malfunctioning heater, which is
has resumed production at the Atlanta field, a needed to facilitate the flow of Atlanta’s highly
section of the offshore Block BS-4, after com- viscous heavy crude. At the time, 7-ATL-4HB-
pleting repairs at one of its development wells. RJS was the only operating development well at
Enauta announced the restart in a press the Atlanta field.
release earlier this week, saying that the well- The well is part of the early production
known 7-ATL-4HB-RJS was back online and system (EPS) that Enauta has installed at the
producing at the expected level of 10,400 barrels Atlanta oilfield. The system consists of three
per day (bpd) after the permanent replacement development wells, all of which have been con-
of one of the pipes in its oil heater. The com- nected to the Petrojarl floating production, stor-
pany had idled the well in late January in order age and off-loading (FPSO) vessel.

Atlanta is in a shallow-water section of the Santos basin (Image: Enauta)

P12 www. NEWSBASE .com Week 08 25•February•2021