Bill to Privatize Petrobras Is Almost Ready, O Globo Says

7
Bill to Privatize Petrobras Is Almost Ready, O Globo Says

Brazil’s Energy Ministry is working on a bill to privatize state-owned oil giant Petroleo Brasileiro SA, known as Petrobras, with the same model the government used to privatize Eletrobras earlier this month, O Globo columnist Lauro Jardim said, without detailing how he got the information.

Author of the article:

Bloomberg News

Bloomberg News

Rachel Gamarski

Petroleo Brasileiro SA (Petrobras) headquarters in Rio de Janeiro, Brazil, on Friday, June 17, 2022. Brazil's state-controlled oil giant Petrobras increased fuel prices in a political setback for President Jair Bolsonaro, who is fighting to contain inflation in an election year.
Petroleo Brasileiro SA (Petrobras) headquarters in Rio de Janeiro, Brazil, on Friday, June 17, 2022. Brazil’s state-controlled oil giant Petrobras increased fuel prices in a political setback for President Jair Bolsonaro, who is fighting to contain inflation in an election year. Photo by Francesca Gennari /Bloomberg

(Bloomberg) — Brazil’s Energy Ministry is working on a bill to privatize state-owned oil giant Petroleo Brasileiro SA, known as Petrobras, with the same model the government used to privatize Eletrobras earlier this month, O Globo columnist Lauro Jardim said, without detailing how he got the information. 

Advertisement 2

In taking private Eletrobras, an electric utilities company, the government diluted its stake to less than 50% of voting shares.

For the Petrobras deal, Energy Minister Adolfo Sachsida is awaiting an approval from President Jair Bolsonaro and a favorable political moment, according to O Globo newspaper. The minister estimates that the increase in fuel prices last week may help the bill, the story said. The nation’s congress must also vote on the bill. 

Folha de S.Paulo newspaper confirmed that bill is being drafted, and added that government may convert preferential shares to common shares, also diluting the government’s stake.

Petrobas did not immediately respond to a request for comment outside of business hours. The country’s energy ministry also did not immediately comment. 

Advertisement 3

Petrobras increased fuel prices on June 17 in a political setback for Bolsonaro, who is fighting to control inflation in an election year and has called out the oil company for its profits. One day after, the president said that he has support from congress to start a probe into Petrobras and its pricing policies. Petrobras declined to comment on Saturday.

In an earlier Folha article on Sunday, House Speaker Arthur Lira said that Petrobras Chief Executive Officer Jose Mauro Ferreira Coelho is “illegitimate and does not represent the company’s majority shareholder,” the Brazilian government. 

Top Stories Newsletter logo

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300