Petrobras’ CEO Seeks to Recover Company’s Credibility

By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – Petrobras’ new president, Pedro Parente, said on Thursday, June 2nd, during his swearing in ceremony that to improve the company’s performance, the oil giant needs to restore its credibility and recover its economic, financial and social responsibilities. The new CEO also said he supports the oil giant’s disinvestment plans and a revision of the requirement of Petrobras participation in pre-salt exploration.

To restore credibility and promote the company’s economic recovery Parente has said he will put the state-owned company’s interest above political interests, including going forward with selling assets which are of no economic interest to the company. Parente was invited by interim President Michel Temer to head the state-run oil giant and is said to have accepted only after being assured by Temer that there would be no political interference in his tenure.

The new CEO also said that although he believes pre-salt exploration ought to be one of the company’s top priorities, he says the company should not be obliged to participate in every venture. “Unless this requirement is revised, the consequence will be to delay, to an unpredictable degree, the full exploration of the pre-salt potential. This obligation does away with the company’s freedom to only participate in exploration and production in the fields that best serve its interests,” said Parente.

Under the rules today, Petrobras is required to hold at least thirty percent of all investment participation in all pre-salt exploration conducted in the country, whether financially beneficial or not.

As for the on-going Lava Jato investigations, which revealed that millions of dollars worth of bribes were given to Petrobras directors for contracts and benefits, Parente reiterated his commitment to aid all investigations.

“We will continue to contribute in an unrestricted and tireless way with the Lava Jato probe, because as victims we have the biggest interest in completely elucidating all the crimes committed and their restitution. Without any doubt, Petrobras is today one of the main protagonists in the search for truth.