CEO denies plan to privatize Petrobras: 'Brazilian society not mature enough to discuss the issue'

Tuesday, July 19th 2016 - 05:40 UTC

Full article 5 comments

“I want to leave my opinion very clear, I don't believe Brazilian society is mature enough to even discuss privatization”, said CEO Parente

However Parente admitted partnerships, “the big discussion at this moment is whether to maintain control or share control”

The Brazilian government has no plans to privatize state-run oil company Petrobras and is still deciding whether to sell its controlling share in several units to shore up its finances, the company's Chief Executive Officer Pedro Parente said in an interview with a local newspaper published on Monday.

Parente, who took over the leadership of the debt-laden company in May, told Folha de S.Paulo that management continues to study the best option to sell part of its fuel distribution unit BR Distribuidora SA.

When asked if the company could be privatized, Parente said: “In no way. I want to leave my opinion very clear, I don't believe Brazilian society is mature enough to even discuss privatization.”

Parente acknowledged that Petrobras still has US$14 billion in assets to sell this year after delays in its divestment program, but he said management will stick to that sale target for the year.

He said the company is analyzing partnerships in several of its businesses, including units planned for divestment, to reduce risks and the need for capital injection.

“The big discussion at this moment is whether to maintain control or share control,” Parente said in the interview.

Parente said he is in favor of national content requirements but based on products that local industry is able to make competitively.

Categories: Economy, Energy & Oil, Investments, Politics, Brazil, International.

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LukeDig
Selling your country sovereignty is a matter of maturity? funny.
Jul 20th, 2016 - 01:28 am 0
Bisley
Whether, or not, anyone is mature enough to discuss privatization, that's what needs to happen. Petrobras will never be efficient, or profitable, or an asset to the country while it's managed by incompetent politicians/thieves.

The only real purpose served by government control is to enrich whatever group is in power at the public's expense. Government couldn't run a gold mine and make money -- people need to be in charge who understand the oil business, and gain from producing oil at a cost low enough to sell it at a profit.
Jul 20th, 2016 - 06:25 pm 0
Jack Bauer
The company had its best performance between 2001 and 2007, while 51% of the controlling shares were in private hands... In 2008, through a highly prejudicial accounting gimmick (to PB), the Federal Government regained control, and after that we all know what happened ....
But Parente is right - unfortunately, while the majority of the politicians know damned well it (privatization) would be for the best, the unions and the ignorant portion of the population are still too dumb to realize it's crucial if the company wants to survive and regain (part of ) its former glory....
It has been proven time and time again, the Federal government is an inefficient, incompetent administrator, not to mention corrupt, and should not be in involved in business.
Jul 20th, 2016 - 06:40 pm 0

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