Petrobras wants to close 1st quarter with divestment of US $ 10 billion

March 15, 2019

RIO – Petrobras president Roberto Castello Branco said on Friday that his mandate was to transform the state company as close as possible to a private company, given the impossibility of privatizing the company.

“I believe that in the first four months of the year we will have announced divestitures of $ 10 billion: maybe in 12 months, we have three or four times more than that,” he said, attending the seminar “The New Liberal Economy” of Business Cooperation of the Getulio Vargas Foundation (FGV).

Castelo Branco highlighted that the company is fighting the delay in production projects, the biggest factor for reducing the rate of return of a project.

Another aspect cited by the president of Petrobras at the seminar is the fact that the company today no longer intends to monopolize segments. He said that, currently, Petrobras has no intention of being a “no-monopoly” monopolist.

The executive also highlighted, as an example, the company’s stance in continuing the strategy of selling refineries. According to him, the sale of refineries will occur not only for the sake of resource allocation but “to remove any temptation to exercise monopoly power,” he said.

Castello Branco commented on the sharing regime, which governs exploration and production auctions in the pre-salt layer – which wins the dispute who offer the largest share of oil to the Union. In his analysis, he said that the regime ” does not result in efficiency. ” “It’s another intervention that results in low productivity.”

Also according to the executive, the local content policy – the proportion of national investments applied in a particular good or service – has been improved. But it still needs to be perfected.

Also according to the president, the company is making a program to implement the meritocracy culture in the oil company. “If people performed well, they would be rewarded,” he said.

Source: Valor

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