Economy

The writer of the examine says that Brazil’s Lola beneficial shopping for again Petrobras refineries

The emblem of Brazil’s state oil firm Petrobras is seen at its headquarters in Rio de Janeiro, Brazil on October 16, 2019. Reuters/Sergio Moraes

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Aug 5 (Reuters) – An oil and fuel trade examine commissioned by former President Luiz Inacio Lula da Silva’s October election marketing campaign will increase Petrobras’ refining capability, together with by reversing refinery privatisations, one of many authors mentioned. recommends Reuters

The examine additionally suggests new investments and the resumption of refinery initiatives by Petrobras after the state-owned oil firm determined to deal with manufacturing from its offshore pre-salt fields amid the largest corruption investigation in Brazil, the so-called Automobile Wash. It was deserted, it’s recommended. scandal

William Nozaki, one of many examine’s authors, on the Employees’ Occasion crew advising Lula on Petrobras, mentioned among the many proposals was the opportunity of Petrobras regaining possession of the RLAM refinery in Bahia. RLAM, the most important refining asset bought by the corporate in 2021, is now owned by Abu Dhabi’s Mubadala Group.

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“For some property, it is potential to seek the advice of with the companions that acquired them to see in the event that they’re actually interested by remaining absolutely operational,” mentioned Nozaki, coordinator of the Institute for Strategic Research in Oil, Pure Gasoline. no Biofuels (Ineep) related to the FUP oil staff union.

“That is about RLAM.”

The Bahia refinery was the primary to be divested by Petrobras from a gaggle of eight refineries to be bought by the corporate underneath a deal it signed with antitrust regulator CADE in 2019 to finish its monopoly on Brazilian refining.

Nozaki didn’t touch upon the antitrust implications of the renationalization of refineries. He mentioned he must speak to the change fund to seek out out what their imaginative and prescient is and in the event that they actually wish to proceed with one hundred pc of the refinery.

Lula is main within the polls in opposition to incumbent Jair Bolsonaro. His authorities’s plan isn’t over but.

“Lola’s steering is that nothing can be accomplished to Petrobras shareholders or investments,” Nozaki mentioned.

The examine proposes a re-evaluation of the sale of the three refineries included within the CADE contract which might be nonetheless within the sale section – Repar, in Paraná, Refap, in Rio Grande do Sul, and Rnest, in Pernambuco.

Along with the Bahia refinery, Petrobras has already closed offers to promote items in Amazonas (Reman), Paraná (SIX), Ceará (Lubnor) and Minas Gerais (Regap).

Lula’s plan echoes that of different leftist Latin American leaders, akin to Mexican President Andrés Manuel López Obrador, who has made growing refinery capability for the nation’s power self-sufficiency a central pillar of his presidency.

Nozaki admitted that reversing the Petrobras refinery sale could be “tough” however not not possible.

He mentioned the primary objective of strengthening Petrobras’ refining capability is to assist Brazil cope with excessive inflation.

“Lola requested us to technically put all out there choices on the desk and take into consideration tips on how to cope with the issue of gas inflation,” Nozaki mentioned.

Inflation has exceeded 11 % up to now 12 months resulting from gas costs, which Bolsonaro has tried to cut back with tax cuts in his re-election bid.

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Reporting by Rafaela Barros; By Anthony Bodell; Edited by Ian Harvey

Our Requirements: The Thomson Reuters Belief Rules.

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