Brazil’s mines and energy ministry (MME) has requested that federal oil firm Petrobras halt the sale of assets for 90 days starting March 1, according to a company press release.
The request was made due to the reassessment of the national energy policy and the establishment of a new composition of the national energy policy council (CNPE), which is part of the ministry.
Last week, a decree signed by President Luiz Inacio Lula da Silva and energy minister Alexandre Silveira mandated representation of six new ministries on the CNPE board: finance; transport; agriculture and livestock; science, technology and innovation; environment and climate change; and integration and regional development.
The suspension of some Petrobras divestments had been expected, as Lula considers it of strategic importance that the company remains an integrated up- and downstream group. Since Lula’s election in October, the company canceled the sales of its Araucaria Nitrogenados (Ansa) fertilizer plant, in Parana, the Gabriel Passos (Regap) refinery, in Minas Gerais, and the Canoas gas and diesel-fired thermal plant, in Rio Grande do Sul.
Among other mid- and downstream assets that are included in Petrobras’ divestment program are the Abreu e Lima (Rnest), Presidente Getulio Vargas (Repar) and Alberto Pasqualini (Refap) refineries, besides the Braskem petrochemical company, Transportadora Bolivia Brasil de Gas (TBG) and the Tres Lagoas nitrogen fertilizer plant (UFN-III).
Regarding the upstream segment, Petrobras is selling a number of mostly shallow water and onshore exploration blocks and fields, as it prioritizes deep and ultra-deepwater assets. In the biofuels area, Petrobras has started the sale process of its Petrobras Biocombustivel (PBio) subsidiary in 2020.
Oversea assets, such as the Tayrona block, in Colombia, and Petrobras Operaciones (Posa), in Argentina, are also for sale. All these processes are likely to be reviewed by Petrobras’ board, controlled by a federal administration that is expected to modify its current business plan.
In charge of Petrobras since February, CEO Jean Paul Prates intends to better insert Petrobras into the energy transition, potentially increasing investments in renewable energy and biofuels. In a statement, Petrobras said its board will analyze the divestments in progress, “from the standpoint of civil law and within the rules of governance, as well as any commitments already made, their punitive clauses and their consequences."
In this way, the company wants its governance bodies to assess potential legal and economic risks, subject to secrecy rules and other regulations.
We remind, Petroleo Brasileiro SA stepped up security at its refineries in a precautionary measure after threats against assets, including Brazil's biggest fuel plant. The threats were detected by Petrobras' intelligence unit monitoring social media communications of supporters of Brazil's far-right former President Jair Bolsonaro, the two people said. The state-controlled company said on Sunday night all its assets and refineries were operating normally.
mrchub.com