Lula to carry out major repairs of Petrobras
2022.11.21 05:17
Lula to carry out major repairs of Petrobras
Budrigannews.com – According to people who know the course of the negotiations, Brazilian President Luiz Inasso Lula Da Silva has begun interviews with candidates for the post of head of the Petrobras oil and gas company, which could lead to the beginning of several difficult months for the state-run company.
Lula, who took office in January, has already announced his intention to radically reorganize Petroleo Brasileiro LLC, which officially bears the company’s name.
According to Lula and Lula’s advisers, the privatization of the company is privatization. The plan, prepared since 2019, was ready for its implementation next year if Jair Bosonaru is re-elected according to some of the creators of the project.
Let’s go back to the drawing boards: investments aimed at renewable energy, oil refining, employee creation and regional economic growth, which made Petrobras an integrated energy giant during LUla’s presidency 2003-2010.
According to people who are familiar with the course of their thoughts about the reboot of the Petrobras strategy, Lula intends to increase the number of personnel of the company’s management in the first and second echelons.
Lula’s transition team did not immediately respond to a request for comment.
Given the scale of Lule’s ambitions, he does not lose for a minute. But technically, since the new rules may take from 2 to 4 months before installing a new C-suite.
It takes no more than 45 days for the Board of Directors to verify and approve the voting on a member of the Board of Directors of shareholders. However, this most aggressive schedule will require the current CEO Cayo Paes de Andrade on January 1. Technically, his term of office is April.
Andrade, a former economy minister who had no previous experience in the oil and gas sector, has not yet given instructions about his readiness to do this, people close to him believe.
Petrobras declined to comment on behalf of Andrey.
By appointing him, Bolsonar avoided making a public concession to Lula, his political enemy, and few expect him to voluntarily cooperate with the transition government.
According to company sources, as part of the official review of the powers, the management of Petrobras prepared a presentation on 90 slides, 10 slides from each of the top managers, including the CEO, for Lula’s transition team.
According to people who are familiar with the issue, last week Lula did not have direct communication with candidates for Petrobras, although a small list was already being formed.
This includes Senator Jean Paul Prats, who has not yet been invited to work, although he flew with Lula by private plane at the COP27 summit.
Prats was an energy policy adviser in the election campaigns, but his appointment may prove to be an obstacle due to his campaign for the mayoral election of Natalia in 2020. Presidential decrees prohibit the appointment of a Director General who has been leading the electoral process for the past six months.
Other candidates on the list are former head of the Bae Rui Costo, a close associate of Lula, Magda Shambryar, former head of the ANP oil and gas industry regulator, who worked in Petrobras in the past.
Last year, a professor of economics at the University of Sao Paulo, FESPS, appointed to the transition team of Lula, was appointed to the position of director of the non-core Petrobras group.
Regardless of the candidate for the position of Director General, the Workers’ Party insists on coordinating the leadership with Lula’s Plans for climate policy and state-owned enterprises as engines of economic growth.
This will allow the resumption of investments in renewable energy sources – biofuel production plants have recently been sold, as well as other non-oil assets to pay off the debt. Renewable energy projects under Bolsonaro have been discontinued, and the company is almost completely limited to investments in oil production on the shelf.
The new approach will lead to the company’s strategy, which is adopted by the largest European BP companies NYSE: PLC, as well as Shell LoN: PLC, which reduces oil rates to invest in cleaner energy supply.
Lula’s advisers also say that Petrobras should direct more profits to investing than to huge past dividends.” In two quarters, the company paid dividends more than twice as much as any European or American oil company.
