Energy Advisor 2022-12-15 – Inter-American Dialogue

LATIN AMERICA ADVISOR

Energy ADVISOR

A daily publication Of the dialogue

December 16, 2022

What Will Become of Petrobras Under Lula’s Presidency?

Brazilian President-elect Luiz Inácio Lula da Silva has signaled that he wants to overhaul state oil company Petrobras. // File Photo: Brazilian Government..

Q

Brazilian President-elect Luiz Inácio Lula da Silva, who takes office on Jan. 1, has signaled that he wants to overhaul state oil company Petrobras. Last month, he began interviewing candidates to run the company, Reuters reported. What are the most significant changes Petrobras could see under Lula? What revisions might be in store for Petrobras’ fuel-pricing strategy and investments in areas such as renewable energy? Who are the most likely candidates to become the company’s next CEO, and how likely is Petrobras to act independently of political pressure and interference, a problem that arose often in the previous administration?

A

Anabel Teixeira, associate at the Brazil and Southern Cone practice at McLarty Associates: “After much speculation, current Petrobras president and Bolsonaro appointee, Caio Mário Paes de Andrade has announced he will depart from his current role to join São Paulo Governor-elect Tarcísio de Freitas’ government as part of the Secretariat for Management and Digital Government team. President-elect Luiz Inácio Lula da Silva is expected to appoint an executive and senior management team that shares his vision for overhauling Petrobras, redirecting much of Petrobras’ investment strategy toward development of clean energy sources such as renewables and biofuels. Lula has also stated that Petrobras’ role is one of economic development and job creation and that, unsurprisingly, privatizing the state-owned oil company is…”

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Ecopetrol to Invest as Much as $6.2 Bn Next Year

Colombia’s majority state-owned oil company, Ecopetrol, headed by Felipe Bayón, will invest $6.2 billion in energy security, financial stability and energy transition. // File Photo: Colombian Government.

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ABOUT THE Energy ADVISOR

A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.