Bolsonaro’s Election Lead Raises the Odds of Brazil Oil Asset Sale Peter Millard and Mariana Durao Right-wing senator could renew his father’s push for more privatization. Welcome to our guide to the commodities driving the global economy. Today, reporters Peter Millard and Mariana Durao look at what Brazil’s presidential election means for Petrobras.
Flávio Bolsonaro’s surprise lead in the first round of Brazil’s presidential election raises the prospect that the nation’s state-controlled oil company could embark on a sweeping asset sale. The right-wing senator is widely expected to push for more private-sector involvement in Brazil’s oil industry and revive policies pursued when his father, Jair Bolsonaro, was president. That’s apt to include selling refineries and aging oil fields held by Petroleo Brasileiro SA.
The big question is whether Petrobras will try to sell its controlling stake in Braskem SA, Latin America’s largest petrochemical producer, which has a current market value of around $250 million. The business has been left deeply indebted by a global downturn in the industry and an environmental disaster caused by its salt mines in northeastern Brazil. Braskem is in the midst of negotiations with creditors, who have been pushing Petrobras to commit to injecting capital into the company to help avoid bankruptcy.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing