Analytical Instrumentation

Is Petrobras Going Private?

Oct 23 2017 Read 695 Times

After being hit by a highly publicised corruption scandal, the future of Petrobras has been volatile. Now, the Brazilian state-owned company appears to be fast-tracking plans to sell off its petrol station business, BR Distribuidora. If the move goes ahead it will be one of Brazil’s biggest privatisations.

So what's promoted Petrobras to sell up? According to sources the move has been largely prompted by favourable market conditions. The company is keen to take advantage of the current landscape, with company CEO Pedro Parente confirming that in lieu of strong performance by Brazil’s stock market Petrobras is preparing BR Distribuidora for listing “as soon as possible.”

“We have to always be prepared so that if the market grins at us, we can go over there and give it a kiss,” said Parente in a recent interview.

Sale set to offset debt

Parente was appointed last year after Petrobras was dragged into a political corruption scandal labelled Lava Jato, or "Car Wash." It rocked the state-owned company, and sparked over two dozen shareholder lawsuits. Parente has admitted that as well as taking advantage of market conditions, the sale will also help to reduce the company’s debt.

According to Parente BR Distribuidora will be listed on Brazil’s Novo Mercado, a category of the private market that's reserved for companies with high governance standards. It confirms the fact that while the at least half of the new board will consist of independent directors, the Brazilian government will still maintain control over 50% of BR Distribuidora.

New directors cherry picked by international head-hunter

To avoid political motivated appointments new directors will be handpicked by the government from a shortlist put forward by a nonbiased international head-hunter. This is crucial, particularly as Petrobras is still recovering from Lava Jato which saw the company riddled with bribery.

Parente maintains that the strict governance will not only attract a better evaluation from investors, but will also "increase the protection of the company so that the problems of the past do not repeat themselves."

Heavy with debt after the Car Wash scandal, efficiency is now front of mind for Petrobras. For a closer look at how the petroleum industry is minimising costs and maximising productivity don't miss 'Selective Ionisation and Affordable High Resolution Mass Spectrometry.' It offers an inside glimpse at how exciting new HRMS instrumentation and ionisation techniques are revolutionising molecular characterisation in the petroleum and petrochemical industries.

Read comments0

Do you like or dislike what you have read? Why not post a comment to tell others / the manufacturer and our Editor what you think. To leave comments please complete the form below. Providing the content is approved, your comment will be on screen in less than 24 hours. Leaving comments on product information and articles can assist with future editorial and article content. Post questions, thoughts or simply whether you like the content.

Digital Edition

Petro Industry News April / May 2018

May 2018

In This Edition Fuel for Thought - Restek Recognised for Outstanding Retirement Benefi - Blackline Safety Named Manufacturer of the Year - 7th International Conference on Polyolefin Charact...

View all digital editions


Caspian Oil & Gas

May 29 2018 Baku, Azerbaijan

Chemistry. Oil & Gas

May 29 2018 Minsk, Belarus

Caspian Power

May 29 2018 Baku, Azerbaijan


May 30 2018 Seoul, South Korea

View all events