& Tobago

Very usefull links


News links




Dow Jones

Oil price



Views and News




Petrobras eyes exit from Brazil bourse's good governance program


By Marta Nogueira and Rodrigo Viga Gaier / Reuters

Petroleumworld 15 07 2019

Brazilian state-run oil firm Petrobras is considering an end to its participation in a program certifying good governance and limited political interference in state companies set up by the Sao Paulo stock exchange, two sources told Reuters.

Chief Executive Roberto Castello Branco is pushing the possibility of exiting the Distinction in Governance Program for State-Run Firms, established by exchange operator B3 SA (SA:B3SA3), said the people familiar with deliberations, who requested anonymity to discuss confidential matters.

They said Castello Branco believed the measures demanded by the program add little tangible value to the firm's compliance efforts and divert resources that could be better used.

In a statement to Reuters, Petrobras did not confirm the deliberations, although it said its continued participation in the program would depend on "the best interests of the company and its shareholders, always seeking more efficiency without, however, reducing internal controls."

Petrobras added that improvements to its compliance protocols have "stood out" in recent years and that many requirements of the B3 program are already part of Brazilian law, so leaving the program would not necessarily weaken the company's corporate governance. B3 declined to comment.

Petroleo Brasileiro SA (SA:PETR4), as the firm is formally known, has spent years trying to recover from one of the world's biggest ever corporate graft scandals.

A five-year-old corruption investigation, known as Operation Car Wash, has uncovered billions of dollars of bribes and overpriced contracts between Petrobras and engineering firms a key reason the stock exchange created the governance program in 2015.

"Naturally such a move could raise some concerns among shareholders and other interested parties," said Andriei Beber, a professor of corporate governance at the Getulio Vargas Foundation. "I don't think it would have so much impact, but it could represent backsliding and on something very dear to markets and especially minority investors."

According to the sources, Castello Branco has said Petrobras should compare itself to other oil majors, rather than the other constituents of the program, which significantly differ from Petrobras in scale and industry.

One of the sources said the most important aspects of the program are already written into Petrobras bylaws.

In 2017, Petrobras celebrated its certification under the program as a sign of its commitment to improved governance. The program lays out higher standards of transparency, internal audits and apolitical leadership, including a requirement that at least 30 percent of board members be independent.

The Car Wash probe revealed a longstanding pattern of politically appointed managers at Petrobras offering inflated contracts to suppliers in exchange for political bribes a practice eventually exposed at a range of Brazilian state firms.

Petrobras says it has cleaned up its act, thanks in part to a robust compliance program.

But the firm is still the target of active investigations, including a far-reaching probe of its commodities trading division, which has drawn the attention of the U.S. Federal Bureau of Investigation and federal prosecutors in New York.

This month, the head of compliance at Petrobras, Rafael Gomes, resigned from his post, citing personal reasons. It was the second exit of a Petrobras compliance chief in just over a year.

In addition to Petrobras, its fuel distribution unit Petrobras Distribuidora SA (SA:BRDT3), state lender Banco do Brasil SA (SA:BBAS3) and its insurance unit BB Seguridade Participacoes SA (SA:BBSE3) and power companies Centrais Eletricas Brasileiras SA (SA:ELET6) and Cia Paranaense de Energia SA (SA:CPLE6) have been certified by the Distinction in Governance Program for State-Run Firms.

Reporting by Marta Nogueira and Rodrigo Viga Gaier from Reuters. 14 07 2019


We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.



Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions as the source.

Other stories you have to get authorization by its authors. Internet web links to are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to:

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1



Editor & Publisher: Elio Ohep/
Contact Email:

CopyRight © 1999-2019, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld   / Elio Ohep - All rights reserved
This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.