Petrobras no longer functions as an arm of government, says ANP director

September 13, 2018

The director general of the National Agency for Petroleum, Natural Gas and Biofuels (ANP), Décio Oddone, believes that the oil and gas sector in Brazil is facing an unprecedented moment in its history, marked by the shrinking performance of Petrobras and the approximation of the national market to the global with regard to the formation of fuel prices and opening up to private companies. “The new scenario makes Brazil talk more to the global market,” he said recently during a seminar with businessmen and industry advisors.

Oddone recalled that the main changes in the Brazilian market were the breakdown of Petrobras’ monopoly and the repositioning of the state company, which reduced its volume of investments and went through a wave of asset sales in recent years. “Today, Petrobras does not function as an arm of government. It seeks to maximize shareholder profitability. And that’s legitimate, “commented Oddone. “But it requires greater regulatory follow-up. This is unprecedented and demands the agency a greater responsibility. ”

He considered, however, that the domestic industry remains subject to the risk that Petrobras may eventually return to acting as an agent of the federal government, with pricing based on political criteria. “The crossroads we find ourselves in is disturbing. It is necessary to respect the market, to have transparency in the formation of prices, to increase the competitiveness of the market, “he said, noting that uncertainties in fuel price policies make it difficult to plan investments both by Petrobras and by other companies in the sector.

The director general of the ANP added that the exploration and production of oil in Brazil is relevant, but does not reflect the potential of the industry, which has the opportunity to increase in size.

According to estimates by the regulatory agency, the country has lost about R $ 1 trillion in investments over the last decade due to the paralysis of the auctions and lack of transparency on the conduct of policies for the sector.

Source: Estadão

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