Lula Is Elected President: What Will Happen to Petrobras, the Shipbuilding Industry, and Fuels for the Next 4 Years of His Term

Among the Promises, Interruption of Current Privatization Processes and the Return of Ship and Oil Platform Construction in Brazil Are Lula’s Projects for Petrobras Demands

With Luiz Inácio Lula da Silva elected president of Brazil today (30), some economic policies of the Bolsonaro government are likely to be undone or interrupted, according to the Workers’ Party campaign this year. In the context of Petrobras, fuels, and privatizations, understand what the leftist plans to implement in the next term.

1. Local Content

Lula says he wants to resume the local content policy to a minimum level above 70%, prioritize national suppliers, and return to constructing oil platforms at Petrobras’s demand in Brazil.

2. BR DO MAR

Lula also says he will continue and encourage Brazilian cabotage, affectionately nicknamed “BR DO MAR,” enacted in January of this year by President Jair Bolsonaro.

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3. Fuels

In the fuel market, Lula stated that he would abolish the International Parity Price Policy [PPI] and would no longer please Petrobras shareholders in favor of 215 million Brazilians.

4. Refineries

The sale process of the remaining Petrobras refineries will be interrupted, possibly even resuming paused or unfinished works, such as Comperj, for example.

5. Privatizations

With the leftist’s victory, the topic of Petrobras privatization would be a “buried” issue. It is possible that Petrobras will no longer be just an oil company and will become an “energy” company. There is even speculation about a merger between Petrobras and Eletrobras, as the government still holds shares in the latter.

6. Divestments

For Petrobras’s divestment policy, it is still unclear what will be done, but journalistic sources say there would be no direct interference in processes already underway.