Brazil - 02

Brazil: TAG Divestment Proposal Likely to Prevail Over Injunctions

Last week, Brazil’s Petrobras announced that it has begun a process to sell off 90% of TAG (Transportadora Associada de Gas). The company, operated by Transpetro (a Petrobras subsidiary), owns the largest network of gas pipelines in the country. Covering the northern, northeastern and southeastern regions, it accounts for roughly 47% of Brazil’s gas infrastructure.

Brazil 6

Brazil: Arrest of Former CEO Unlikely to Slow Petrobras’ Recovery

Aldemir Bendine, the former CEO of state-owned oil company Petrobras and state-owned bank Banco do Brasil, was arrested last week within the context of the Lava Jato Federal Police investigations. Bendine (see our Personality of the Week) is suspected of having received $3mn reais (roughly $1mn) in bribes from business executives of the construction conglomerate

Brazil - 02

Brazil: Possible IPO for Petrobras’ Distribution Unit: Opportunity Outweighs Controversy

On 22 June Petrobras CEO Pedro Parente stated that he will soon ask the board to deliberate on an IPO for the company’s distribution arm, BR Distribuidora. In statements later divulged in the local press, Parente stressed that the timing seems right for the move, given the significant number of IPOs in Brazil this year.

Brazil - 04

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

Brazil - 02

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,

Brazil 6

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