RIO DE JANEIRO: If Flavio Bolsonaro wins Brazil’s presidential runoff on Oct 25, he will give the nation’s state oil company broad freedom to reshape its portfolio while seeking to bring more private investment into sectors dominated by the state-controlled oil producer, according to one of his energy advisers.
“What has been discussed about Petrobras is that it won’t be privatised. Period,” Alexandre Chequer, an energy lawyer advising Bolsonaro’s campaign, said in an interview in Rio de Janeiro.
Privatising the company was previously considered when Jair Bolsonaro, Flavio’s father, was Brazil’s president until 2023.
The opposition candidate’s surprise first-round victory earlier this month sparked a rally in Brazilian assets amid expectations of tighter fiscal policy that could help bring down double-digit interest rates, as well as more market-friendly economic policies.
Petrobras shares listed in Sao Paulo have jumped near 13% since Brazilians first voted for president earlier this month.
That was almost twice the increase for Brazil’s main equities benchmark.
Decisions about Petrobras’ operations and portfolio should be left to its eventual future leadership, including where to invest and whether to buy or sell assets, according to Chequer.
He had helped draft Brazil’s petroleum law and exploration and production contracts in the late 1990s. — Bloomberg
