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Who benefits from the privatization of Petrobras?

The privatization of four Petrobras refineries in Brazil was announced last month and 55% of the country is opposed to the measure: who can benefit?

Who benefits from the privatization of Petrobras?

Last month, Petrobras president Pedro Parente announced the privatization of four of the 13 refineries that the company operates in Brazil. The four privatized refineries were: the Landulpho Alves Refinery (RLAM) in Bahia, the Nordeste Refinery or Abreu e Lima (Rnest), in Pernambuco, the Alberto Pasqualini Refinery (Refap) in Rio Grande do Sul and the Presidente Getúlio Vargas Refinery (Repar) in Paraná. After this action, according to Telesur, the company anticipates the sale of 60 percent of Petrobras units.

Leer en español: ¿A quién beneficia la privatización de Petrobras?

The privatization of Petrobras allowed by law 4567 of 2016, which ends the exclusivity that the state oil company had on the exploitation of crude oil in Brazil, would benefit especially transnational companies such as Chevron and Royal Dutch Shell, who would enter in the bid for the control of the exploitation of crude oil.

In addition to the fact that Law 4567 of 2016 promoted by Michel Temer takes away from Petrobras the guarantee of being the only oil operator in the country, the amendment 241 of this same law establishes the salary freeze in the company, as well as the expenses and investments of Petrobras in the next 20 years.

Leja em português: Quem se beneficia com a privatização da Petrobras?

According to Telesur, these modifications will affect investments in education, health, and other fundamental services in the country, since the resources would be destined for the international market.

As a result of the above, the president of the Petroleum Union of Paraná and Santa Catarina (Sindipetro), Mário Dal Zot, said that a debate has been opened on possible forms of action to prevent privatization, forms of action among which has been contemplated the possibility of initiating a strike at the national level in the company.

You may be interested: For how long will Latin America depend on oil? 

Finally, according to the magazine Dinero, the announcement of Fernando Coelho, Minister of Mines in Brazil, about the imminent privatization of Petrobras, added to the publication of the National Treasury on the issuance of bonds abroad with due date for January 13, 2028 (and the repurchase of other bonds), led to a revaluation of the Real, the national currency of Brazil, against the dollar.

According to a survey conducted by the Folha de Sao Paulo newspaper "55% of Brazilians are against the privatization of oil and for an even larger number, 74%, the company should not be sold to foreign groups under any hypothesis."

Likewise, recently there was a strike in Brazil by truckers who were protesting against the increase in fuel prices and Petrobras' pricing policy. Likewise, in response to the possible privatization of the company, on May 30, oil workers joined the protests, who started a 72-hour strike with complaints similar to those expressed by the truck drivers and calling for the resignation of the president of the company who was appointed by the President of the Government, Michel Temer.

Latin American Post | Juan Diego Bogotá

Translated from "¿A quién beneficia la privatización de Petrobras?"

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