Brazilian Government asks Petrobras new board to reassess asset sales

Brazilian Minister of Mines and Energy Alexandre Silveira asked on Wednesday (29) that  President of Petrobras Jean Paul Prates reassess the divestment strategies of the state company that were suspended for 90 days.

A preliminary analysis of the Board of Directors of the state-owned company in effect until then decided that five assets with pre-signed contracts would continue in the sale plans.

According to a statement from the Ministry, reassessing the strategy is necessary because of the new Council that began taking office this week and has already had two government nominees rejected.

“The Minister of Mines and Energy, considering that the analysis was preliminary, as well as the new composition of the Executive Board, elected five days after the deliberation, requested that the President of Petrobras adopt the necessary measures for better evaluation of the subject, except in the best judgment, before the analysis by the Board of Directors, respecting the rules of governance of the company and its insurmountable interests,” it says.

Among the assets that already have pre-signed contracts are the following:

• the Lubnor refinery in Ceará, the Potiguar Pole (onshore fields in Rio Grande do Norte),
• the North Capixaba Pole (mature onshore fields in Espírito Santo),
• the Golfinho and Camarupim Pole (post-salt in the Espírito Santo Basin)
• and the Pescada, Arabaiana, and Dentão fields (shallow waters in the Potiguar Basin).

In a note to the press, Petrobras said it received the request from the Ministry of Mines and Energy and that it will take it to the Board of Directors to carry out “further studies.”

“Given the above, considering the competence of the Executive Board of Petrobras to propose to its Board of Directors the response to the MME, I request, due to the election of new management, that, once again, respecting the rules of governance of this company and to preserve national interests, if it considers it appropriate, it is requested to return the matter to the Board of Directors for further consideration by the Executive Board to carry out further studies,” it wrote.

With information from Gazeta do Povo

More: Brazil news in English, every day from The Rio Times.