Page 10 - LatAmOil Week 15 2021

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Brazil’s president has expressed strong interest in fuel price caps (Photo: Petrobras)

Shareholders approve Luna’s

nomination as Petrobras CEO

SHAREHOLDERS in Petrobras, the national oil from his traditional right-leaning, market-ori-
company (NOC) of Brazil, formally approved ented stance. The president has been looking for
the nomination of Joaquim Silva e Luna as the ways to give his administration more leverage
firm’s next CEO in a meeting on April 12. over fuel pricing, and he began trying to change
This outcome of the vote at the shareholders the fuel tax regime earlier this year. He has also
meeting was not a surprise, given that Petrobras declared his desire to see domestic petroleum
is majority-owned by the Brazilian government product prices, which were deregulated nearly
and Luna was chosen for the position of CEO by 20 years ago, capped.
President Jair Bolsonaro. Luna has yet to secure These moves have drawn sharp criticism
the approval of Petrobras’ board of directors, but from Roberto Castello Branco, Petrobras’ for-
he is likely to do so in the near future. mer CEO. Castello Branco made his opposition
In the meantime, Carlos Alberto de Oliveira, to proposed changes in pricing policy clear and
the company’s head of exploration and produc- asserted repeatedly that Petrobras was not at
tion, will serve as interim CEO. fault for the rising cost of diesel and other fuels.
Bolsonaro’s decision to name Luna, a reserve In response, Bolsonaro opted not to renew the
army general and former defence minister, as CEO’s contract, which expired on March 31.
the NOC’s next CEO has been controversial. The president’s dismissal of Castello Branco
Luna has no experience in the oil and gas sector, has spurred a certain amount of discontent
and he has said he will follow the president’s lead among Petrobras’ managers and executives,
on key issues such as fuel pricing policy. many of whom have expressed support for his
This deference has sparked concern among business strategy. Several members of the NOC’s
investors, since Bolsonaro has signalled in board of directors resigned in March to protest
recent months that he may be moving away against Luna’s appointment as CEO. ™

Petrobras signs deal with government

on stakes in Sépia and Atapu blocks

BRAZIL’S national oil company (NOC) Petro- According to a company statement, this
bras has signed an agreement with the govern- agreement provides for Petrobras to assume a
ment on the size of the stakes it will take in the 39.5% stake in Atapu, leaving a 60.5% stake for a
Sépia and Atapu blocks in the event that federal new contractor under such circumstances. Like-
authorities receive any bids for these two off- wise, it provides for the NOC to take 31.3% of
shore sites. Sépia, leaving 68.7% for a new contractor..

P10 www. NEWSBASE .com Week 15 15•April•2021