The transition team for Brazil's President-elect Luiz Inacio Lula da Silva has asked the current administration to halt ongoing asset sales by state-run oil giant Petrobras until a new mines and energy minister is appointed, a member of the group said on Nov. 22.
Professor Mauricio Tolmasquim, tapped last week to participate in the mining and energy group of the transition process, made the remarks after a meeting in Brasilia.
A second member of the team, Senator Jean Paul Prates, said that Lula was expected to decide who would be Petrobras' next CEO by early December.
Prates, who was an important energy policy advisor during Lula's election campaign, has been seen as one of the possible nominees for the CEO position of the oil giant.
However, his appointment to Petrobras may face compliance hurdles as Prates has run for mayor of the city of Natal in 2020, which would prevent him from taking the position under Brazilian law.
Lula is set to take office from incumbent President Jair Bolsonaro on Jan. 1.
Prates also said that the transition team will meet with the firm's management to ask for the suspension of ongoing strategic processes, such as the sale of its 51% stake in Transportadora Brasileira Gasoduto Bolivia-Brasil (TBG), which operates a natural gas pipeline that connects Bolivia and southern Brazil.
The decisions related to TBG "even involve foreign policy of the country, because they involve Bolivia, they involve the gas policy of Argentina, the whole scheme of gas pipelines that is being formed there in the southern cone, and you have to have a parsimony to decide on this," he said.
The senator did not say when the meeting with Petrobras is due.
Recommended Reading
Brett: Oil M&A Outlook is Strong, Even With Bifurcation in Valuations
2024-04-18 - Valuations across major basins are experiencing a very divergent bifurcation as value rushes back toward high-quality undeveloped properties.
Marketed: BKV Chelsea 214 Well Package in Marcellus Shale
2024-04-18 - BKV Chelsea has retained EnergyNet for the sale of a 214 non-operated well package in Bradford, Lycoming, Sullivan, Susquehanna, Tioga and Wyoming counties, Pennsylvania.
Defeating the ‘Four Horseman’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production — and keep the cash flowing.
Santos’ Pikka Phase 1 in Alaska to Deliver First Oil by 2026
2024-04-18 - Australia's Santos expects first oil to flow from the 80,000 bbl/d Pikka Phase 1 project in Alaska by 2026, diversifying Santos' portfolio and reducing geographic concentration risk.
Ozark Gas Transmission’s Pipeline Supply Access Project in Service
2024-04-18 - Black Bear Transmission’s subsidiary Ozark Gas Transmission placed its supply access project in service on April 8, providing increased gas supply reliability for Ozark shippers.