See how the privatization process of the state-owned company will take place
Estimated reading time: 4 minutes
The Minister of Economy, Paulo Guedes, spoke again about the privatization of Petrobras and suggested a process similar to the privatization of Eletrobras, through the sale of shares on the stock exchange, a model known as capitalization. In the oil company, state control is even smaller than in Eletrobras.
According to experts, this would be a possibility as there are interested investors and there are other examples around the world. However, unlike Eletrobras, which was privatized when most of the energy sector was already private, Petrobras is responsible for 75% of fuel refining and 93% of oil exploration.
In May of this year, the Ministry of Mines and Energy sent a request for Petrobras to be included in the Investment Partnership Program (PPI) portfolio, aiming at studies for privatization, which was approved on June 2.
Currently, the process is in the Ministry of Economy, with the technical team, responsible for defining a viable privatization model for the oil company.
Since 2015, the oil company has sold BRL 243.7 billion in assets. According to Petrobras, this process will generate resources for the payment of debts and reinforce investments in the area of oil exploration in the pre-salt layer. It is this area that the government seeks to transfer definitively to the private sector.
Advantages of privatization
Supporters of Petrobras privatization point out that the process will attract more investment in oil, fuel and gas, in addition to strengthening the bodies that determine the sector’s rules and oversee these markets.
For them, privatization will stop the oil company from being used as an electoral resource.
Disadvantages of privatization
Those who oppose privatization of Petrobras claim that this model will reduce the possibility of strategic planning in the country in relation to the energy, oil, gas, petrochemical and fuel sectors.
By privatizing the largest company in the sector, the country will be hostage to private incentives and tax exemptions when it has problems with fuel prices.
Furthermore, by focusing only on the exploration area, the company will lose protection against changes in refining and production prices.
Privatization model similar to Eletrobras
For the privatization of Eletrobras, completed in June 2022, the model used was that of shares offering voting rights. The government that owned 68.6% of these shares took 40.3%.
Before the offer, it was necessary to approve a law in the National Congress with new rules for the energy sector. One of these rules was the golden share, for example, which grants the government veto power over the takeover by another company.
According to the founding partner of Cbie (Brazilian Center for Infrastructure), Adriano Pires, who has already been considered to assume the presidency of Petrobras, the Eletrobras privatization model could be replicated.
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