BRASILIA, Dec 30 (Reuters) – The incoming chief govt of Brazil’s state-run oil firm Petrobras (PETR4.SA) stated on Friday he deliberate to tweak the nation’s gas value coverage, however stated traders needn’t fear.
President-elect Luiz Inacio Lula da Silva on Friday named Senator Jean Paul Prates as the following CEO of Petroleo Brasileiro SA, as the corporate is formally identified. Lula tweeted that Prates will “lead the corporate into an awesome future.”
Prates advised journalists he’ll change the agency’s pricing coverage, which pegs gas to international oil costs, however emphasised this doesn’t imply costs will likely be fully unlinked to the worldwide market.
“Petrobras’ pricing coverage will likely be modified, however not essentially to traumatize traders,” he stated. “Will probably be modified as a result of the nation’s coverage will likely be modified.”
The corporate’s pricing coverage was on the middle of turmoil throughout President Jair Bolsonaro’s administration. Three Petrobras CEOs have been ousted throughout his time period, as gas value hikes stoked inflation and harm his reputation.
Prates, a distinguished voice on vitality coverage inside Lula’s leftist Staff Get together (PT), was already seen as a powerful candidate for the Petrobras job after being appointed to the transition group’s group for mines and vitality. He’s anticipated to shift the corporate away from its give attention to deep water drilling towards renewables.
After Prates takes over the agency, which he stated ought to occur in mid-January, he’ll current firm plans intimately to Petrobras’ board of administrators and to Brazilians normally.
“I see Petrobras as an organization that should look to the long run and spend money on the vitality transition to fulfill the wants of the nation, the planet, and society, along with the long-term pursuits of its shareholders,” Prates stated.
He beforehand stated the incoming authorities had no intention of inflicting a “breakdown” of Petrobras.
Business group IBP praised the appointment, saying Prates “has a broad tutorial curriculum and consolidated expertise within the sector, mixed with nice capability for dialogue.”
Earlier, Lula tapped Tarciana Medeiros to move Banco do Brasil SA (BBAS3.SA) and Rita Serrano as CEO of Caixa Economica Federal, fulfilling a pledge he would title two ladies to move the state-run lenders.
Reporting by Lisandra Paraguassu, Roberto Samora and Gabriel Araujo in Brasilia
Writing by Peter Frontini
Enhancing by Josie Kao and Matthew Lewis
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