PW
Español

 

PW
Guyana
Surinam


PW
Trinidad

& Tobago
Caribbean

 

Prices
Graphics

 




Very usefull links



PW
Bookstore





Blogspots

The Global Barrel

Tiempo Culural

Gustavo Coronel

Iran Watch.org

Le Blog des
Energies Nouvelles

News Links

AP

AFP

Aljazeera

Dow Jones

Reuters

Bloomberg

Views and News
from
Norway

 

PW
Bookstore

 

 

 

Petrobras' new CEO seeks investment,
less volatility

ITAIPU

Joaquim Silva e Luna

- Joaquim Silva e Luna speaks in an interview after nomination
- Brazil needs less fuel price volatility, while avoiding losses

By Peter Millard and Samy Adghirni/Bloomberg

RIO
Petroleumworld 02 25 2021

Petroleo Brasileiro  SA's incoming chief executive officer wants to continue opening the refining industry to outside investment and will avoid losses on fuel prices.

Joaquim Silva e Luna, a former defense minister who President Jair Bolsonaro abruptly named to lead the state-controlled oil company last week, said in an interview that he'll work with the board to understand how it prices fuel, while adding that there should be less volatility and more “predictability” and “transparency” for consumers.

Petrobras will continue to focus on its most profitable oil fields in the so-called pre-salt region in deep waters, Silva e Luna said Wednesday in e-mailed response to questions. Brazil's pre-salt has some of the most productive oil wells anywhere and Petrobras has been directing an increasingly large share of its business plan to develop them.

“We can't forget the basics. Petrobras is the company with the most know how and has leadership in deep water-exploration, where the pre-salt reserves are located,” he said. “We can't pull back from exploring.” Petrobras shares  extended gains after his comments and were up 2.5% to 24.66 reais as of 2:08 p.m. in Sao Paulo. The stock tanked 22% Monday as investors worried Silva e Luna's appointment signaled government interference at the company.

Petrobras new CEO cost in value $19 billion over two days

CEO Roberto Castello Branco, who has publicly clashed with the president over the scale of recent price increases, will keep his job until his term ends on March 20, Petrobras said in a statement Tuesday. Silva e Luna said he respects Castello Branco and hopes to meet with him and current management for an orderly transition.

“I believe that there are opportunities to attract companies interested in refining our oil,” Luna said.

Rising oil prices have been a mixed blessing for Petrobras historically because it has come under pressure from both business- and labor-friendly administrations to suppress fuel costs. Truckers, who brought the economy to a halt during a strike in 2018 and are part of Bolsonaro's political base, have been complaining about rising diesel prices and threatening to strike, prompting the president to publicly criticize what he called excessive increases.

“There are things we practically have no power to change, like the exchange rate and the international price of oil, that will strongly impact fuel prices and affect the pockets of consumers,” he said. “We will look for other ways, like I say, always in in consensus with the other directors and the board, taking measures together, to see what is possible to do, without suffering losses.”

______________


By Peter Millard and Samy Adghirni from Bloomberg

bloomberg.com
02 24 2021

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep /
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2021, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2021, 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: http://www.law.cornell.edu/uscode/17/107.shtml. 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.