The new Petrobras

 

Magda Chambriard (an engineer and former Petrobras employee who headed the National Agency for Oil, Gas and Biofuels during Dilma Rousseff's administration), the new president of Petrobras, argues that Brazil should accelerate oil exploration to replenish reserves. Without this, according to her vision, which is the same as Lula's, Brazil could return to being an importer.

She is the eighth president of Petrobras in eight years.  Chambriard, 66, is seen as someone who will strengthen the company's investments, especially in refining, and give more orders to the Brazilian shipping industry. For her, the last word must come from President Lula.

She is a strong advocate of the national industry's ship orders, investments in refineries and oil exploration in the Foz do Amazonas basin, in the Equatorial Margin region. The potential exploration areas of the Foz do Amazonas Basin and Pelotas, in Rio Grande do Sul. Petrobras will focus on projects that generate profits, with returns for all shareholders and guarantees that the current fuel price policy will be maintained.

One of Magda Chambriard's first goals as head of Petrobras was to open oil exploration in Foz do Amazonas. Initial exploration results indicate high potential for oil in the region off the mouth of the Amazon River on the equatorial margin, mainly in the section known as Block 59. Nearby proven reserves, such as in Rio Grande do Norte and in neighboring Guyana and French Guiana, support this thesis (with French Guiana they may have problems with accusations from the Brazilian government that they are exploiting potential Brazilian fields). The Equatorial Margin is a large coastal strip between Rio Grande do Norte and Amapá with five oil basins. Of the five, three are already producing oil and are the ones farthest from Foz do Amazonas. However, the license for this drilling in Foz do Amazonas was denied by Ibama (Brazilian Institute for the Environment and Renewable Natural Resources) in May 2023. Petrobras has appealed and says it meets all the requirements. The license remains paralyzed at the agency, which is under the management of the Ministry of the Environment and Minister Marina Silva. Ibama, on the other hand, expressed concern about wildlife assistance in the event of an accident and the lack of more detailed studies. The region contains protected areas with mangroves, the Amazon rainforest itself and indigenous communities. Petrobras claims that the entire exploration, development and production phase would be far from the coast. Ibama, the Ministry of the Environment, environmentalists and indigenous peoples, with global support, are very active in challenging the project. Exploration is also a divisive issue within the government. The Minister of Mines and Energy speaks of oil exploration until the country is developed. The Climate Change Secretariat criticizes the lack of an oil money project to finance the energy transition.

The most recent oil discovery was in the Potiguar Basin, between Rio Grande do Norte and Ceará. Petrobras' current strategic plan calls for $3.1 billion to be invested in the region over the next five years.

Another list of priorities assigned by Lula to Magda Chambriard's management at Petrobras (also assigned to its former president, Prate, but the latter did not comply, which annoyed Lula) includes the acceleration of projects already underway and new developments, such as the repurchase of the Manaus refinery and the creation of a gas chemical pole in Uberaba, in Minas Gerais. It also includes projects underway but slowed down, such as the Abreu e Lima refinery in Pernambuco and the Gaslub complex, formerly Comperj (Petroquímica de Rio de Janeiro).

 

What can we expect from the new Petrobras?

This Petrobras will be more obedient to Lula, and as we have said before, Lula will not beat around the bush when it comes to boosting his oil industry. For him, the most important thing is energy security and fighting poverty in Brazil with hydrocarbon revenues. Sustainability in this sense is still on his agenda, but not at the top of the priority list.