Rio de Janeiro Will Be the Largest Oil Producer in the Americas, Says Petrobras President

Roberto Castello Branco stated this Tuesday that Rio de Janeiro has a “unique opportunity” to recover its economy through the oil market.

In a hearing before the Committee on Mines and Energy of the Chamber, this Tuesday, the president of Petrobras, Roberto Castello Branco, stated that Rio de Janeiro has a “unique opportunity” to recover its economy through the oil market. He emphasized, however, that it is necessary to know how to use these resources.

“I think the state of Rio de Janeiro has a unique opportunity to get out of the deep recession it has been in. I told Governor Wilson Witzel that he will become a oil sheikh. Rio de Janeiro will be the largest oil producer in the Americas, surpassed only by the United States and Canada. There will be jobs, not only from oil producers but from suppliers, generating revenues, royalties, special participations. It will benefit greatly. The resources must be used wisely, used for the development of the economy of the state of Rio de Janeiro.” said Castello Branco.

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He also stated that Petrobras has done everything possible to reduce fuel prices, emphasizing that the final price depends on external factors and that its goal is not to let the price be higher than the international average.

Castello Branco said that Petrobras reduced the frequency of fuel price adjustments, which reached daily changes during the management of former Petrobras president Pedro Parente.

He highlighted, however, that gasoline and diesel are international commodities and that this is “unfortunately outside of our control”.

“Our effort is aimed at maintaining parity with global prices”, said Castello Branco, emphasizing that in the past, Petrobras had practiced prices above and below the international quotation.

Castello Branco was questioned several times about the situation of the Rio de Janeiro Petrochemical Complex (Comperj), in Itaboraí, Rio, which had its works halted amidst corruption allegations in Operation Car Wash.

The president of the state-owned company defined the project as a “disaster”, highlighting that the promise to generate thousands of jobs was not fulfilled.

According to the oil company, various options are being analyzed for investing in Comperj (Rio de Janeiro Petrochemical Complex), including a thermoelectric project. “However, such studies are still preliminary, and there is no decision on the matter,” the state-owned company points out.

Finally, Petrobras clarifies that it maintains the project to build a refinery with CNPC (China National Petroleum Corporation) on site and continues with the project to create a natural gas processing unit.

Petrobras signed, this Tuesday, June 11, a Commitment Term of Cessation (TCC) with the Administrative Council for Economic Defense (Cade). The state company is to sell eight oil refineries, including fuel transport assets, so that the administrative inquiry by the agency investigating abuse of position can be suspended.