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Brazil: Oil Unions Call for Petrobras Resignations, Ending Truce

On 8 June the FUP – Brazil’s largest organization of oil unions – and a number of other leftist groups, such as the Main Workers’ Central (CUT) and the Landless Workers’ Movement (MST) protested in Rio de Janeiro against the “privatization” of Petrobras. They also called for Parente’s resignation as well as those of all

Brazil - 01

Brazil: Royalty Changes: Is a Decision Nearing?

According to a report published this week by daily newspaper Folha de Sao Paulo, the Brazilian government is considering the possibility of gradually implementing a revision of oil sector royalties. The measure would be some form of compromise aimed at ending a long-winded battle over current charges. Over the last year and a half, the

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Brazil: Parente Stays On as CEO: A Good Moment for Petrobras

Petrobras announced this week that CEO Pedro Parente’s tenure has been renewed for an additional two years to 2019. The decision was approved in a board meeting on 26 March. Parente took over as CEO in May 2016 following Aldemir Bendine’s resignation. Bendine, who had served as the head of the state-owned Banco do Brasil,

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Brazil: Petrobras’ Latest Injunction: Continued Legal Challenges at the Local Level

On 9 February a court in the northeastern state of Sergipe suspended yet another asset divestment by Petrobras, blocking the sale of the company’s subsidiary NTS, a network of gas pipelines covering the Southeast region of Brazil. The sale is one of the biggest in the company’s divestment portfolio, and the biggest so far to

Brazil - 03

Brazil: Oil Union Salary Raise: A Major Political Victory for Parente

The FUP, which comprises 13 different unions in the oil sector, accepted an offer of an 8.57% salary increase last week, to be paid retroactively back to September. The unions and Petrobras management had been in negotiations over salary adjustments since September, and a brief strike in late December (that was called off after three

Brazil - 01

Brazil: Petrobras’ Comperj Announcement: A Hint of an Agreement with the TCU?

Petrobras CEO Pedro Parente announced last week that the company is planning to reinitiate the construction of the UPGN at Comperj. Thirty companies – all foreign – have been invited to participate in a procurement bid. According to Parente, the invitations were sent in the first week of January and did not include Brazilian companies

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Brazil: Oil Sector Reform Bill Approved: Implications for Petrobras

On the evening of 9 November the Chamber of Deputies issued the last step in approving the long-awaited oil sector reform bill, which drops the requirement that Petrobras operates and owns a minimum 30% stake in all pre-salt fields. Though the bill’s main text had already been approved last month, proposed amendments to it were

Brazil - 02

Brazil: Petrobras’ Local Content Waiver Request

On 20 September Petrobras filed a request with the ANP asking for a waiver from local content obligations so it can hire a foreign platform provider for its pre-salt Libra field pilot project. The ANP, the main regulatory agency in the oil sector, will now deliberate on the request. Petrobras had previously sought to open