Opinion: Petrobras Is Right to Divest Its Businesses in the Northeast and Other Non-Profitable Assets

Written by Paulo Nogueira

Published on 27/08/2020 at 11:14

Principais ativos da Petrobras no Nordeste

Seja o primeiro a reagir!

With The Risk of Decreased Oil Demand and Falling Prices, Even Petrobras’ Operations in The Pre-Salt Could Be Made Invable by The High Cost of Low-Productivity Wells

By Luiz Henrique, August 27, 2020 – Petrobras is selling some assets. It needs to raise capital after enduring so much theft and mismanagement in the past, which means it still has a huge debt (it was once the largest for a company in the world), making the cost of raising resources in the financial market very high.

For this reason, Petrobras decided to sell all its assets in Rio Grande do Norte, in an official statement to the press this week. Both in RN and in most of its operations in the northeast, the wells are of low productivity and would not generate enough resources to maintain the new business model.

Without resources, Petrobras will not be able to continue extracting so much oil from the pre-salt and we run the risk, with oil demand falling in the coming years, that prices fall and make offshore extraction unfeasible.

ARTICLE CONTINUES BELOW

See also

Prioritizing the pre-salt, small plants and wells are lacking investments and are at risk of becoming unfeasible. Moreover, a giant like Petrobras does not have a compatible structure to operate small businesses, so the best solution is to sell to someone who has the expertise and compatible cost structure. It would be like “Carrefour operating small shops”.

However, some state governments are against this, and it remains to be seen why they prefer the risk of closure. On the Twitter of the Governor of RN, Fátima Bezerra (PT), she expresses indignation and concern about the socio-economic situation of the state, especially for not having been consulted in advance.

I believe that the power to appoint allies to commissioned positions in state-owned companies, in addition to appointing service providers, notably contractors, as we saw in the Lava-Jato, weighs in the opinion of some politicians, despite knowing people who, due to ideology, believe in the state as a businessman.

By Luiz Henrique Sanches

Opinion: Petrobras Is Right to Divest Its Businesses in the Northeast and Other Non-Profitable Assets

With The Risk of Decreased Oil Demand and Falling Prices, Even Petrobras’ Operations in The Pre-Salt Could Be Made Invable by The High Cost of Low-Productivity Wells

More Interesting Articles

Family without running water in the interior of Ceará takes out a loan to drill an artesian well and discovers possible oil, but cannot use it, cannot sell it, and is left with a debt of R$ 15,000.

On the Greek island of Ithaca, archaeologists have found what may be a sanctuary dedicated to the legendary Odysseus, with inscriptions bearing his name and votive offerings that span from the Mycenaean to the Hellenistic era.

Is a smart plug worth it in a regular home? What does it offer: turns on and off via smartphone, creates routines by schedule, prevents forgotten devices, sometimes monitors consumption, and improves habits without renovation or miracles.

Spain surprises the world by erecting 62 artificial dunes, mixing sand with natural remains of posidonia, and causing the structure to lose only 1.4% of its volume in 1 year.

After two years of internal discussions, Paraguay has finally regulated the law that opens the country to foreign technology and service companies with tax incentives that promise to create thousands of jobs and change the economy.

Map reveals how the Earth may look in 250 million years: continents will reunite in the Last Pangaea, 92% of the planet could become uninhabitable for mammals, and Spain appears among the rare possible exceptions.

Geographers redefine the Brazilian relief and confirm the presence of mountains in 14 states with a new system that changes historical criteria and alters the way the territory is classified.

With mass production of over 2 million hamburgers per month, the Korean factory impresses with high-standard industrial machines, capable of processing 500 kg of meat per hour and supplying entire networks of markets worldwide.

Used cars soar in Brazil: historical appreciation changes the landscape in 2026

With a very high value, the factory extracts raw ore to produce gold bars, the precious yellow and shiny metal, which undergoes smelting, molding, and finishing to be present in the lives of people around the world.

Paranaense students develop a system that transforms farm waste into clean energy and revolutionizes sustainable agribusiness.

With a rigid organization, attentive workers, and machines that don’t stop for a second, the production of foam slippers like Crocs in India demonstrates how the factory transforms raw material into pairs ready for export.

Opinion: Petrobras Is Right to Divest Its Businesses in the Northeast and Other Non-Profitable Assets

With The Risk of Decreased Oil Demand and Falling Prices, Even Petrobras’ Operations in The Pre-Salt Could Be Made Invable by The High Cost of Low-Productivity Wells

More Interesting Articles

Family without running water in the interior of Ceará takes out a loan to drill an artesian well and discovers possible oil, but cannot use it, cannot sell it, and is left with a debt of R$ 15,000.

On the Greek island of Ithaca, archaeologists have found what may be a sanctuary dedicated to the legendary Odysseus, with inscriptions bearing his name and votive offerings that span from the Mycenaean to the Hellenistic era.

Is a smart plug worth it in a regular home? What does it offer: turns on and off via smartphone, creates routines by schedule, prevents forgotten devices, sometimes monitors consumption, and improves habits without renovation or miracles.

Spain surprises the world by erecting 62 artificial dunes, mixing sand with natural remains of posidonia, and causing the structure to lose only 1.4% of its volume in 1 year.

After two years of internal discussions, Paraguay has finally regulated the law that opens the country to foreign technology and service companies with tax incentives that promise to create thousands of jobs and change the economy.

Map reveals how the Earth may look in 250 million years: continents will reunite in the Last Pangaea, 92% of the planet could become uninhabitable for mammals, and Spain appears among the rare possible exceptions.

Geographers redefine the Brazilian relief and confirm the presence of mountains in 14 states with a new system that changes historical criteria and alters the way the territory is classified.

With the new law, shopping malls will no longer operate on Sundays, similar to supermarkets; the rule imposes closure by 9 PM, foresees a fine of R$ 15,000, suspension, and even revocation of the license in Salvador.

Only 7 ships have crossed the Strait of Hormuz in the last 24 hours when the normal is 135 per day, and the United Arab Emirates confirms that 230 oil tankers loaded with oil are ready to depart but are prevented from leaving while Iran turns the waterway into a sovereign control post.

Trump sent a treaty on critical minerals to Lula in early 2026, and the document is sitting in the president’s drawer unsigned because the Brazilian government considers the proposal too generic and refuses to turn the country into a mere exporter of raw materials.

R$ 7 billion forgotten in the FGTS may finally be released after failures in the 2025 measures, while millions of workers find out they may have unclaimed money.

Brazil’s oil exports soar with record purchases from China, potentially generating a new cycle of economic growth, increasing external revenues, and consolidating the country as a global strategic supplier.

With mass production of over 2 million hamburgers per month, the Korean factory impresses with high-standard industrial machines, capable of processing 500 kg of meat per hour and supplying entire networks of markets worldwide.

Used cars soar in Brazil: historical appreciation changes the landscape in 2026

With a very high value, the factory extracts raw ore to produce gold bars, the precious yellow and shiny metal, which undergoes smelting, molding, and finishing to be present in the lives of people around the world.

Paranaense students develop a system that transforms farm waste into clean energy and revolutionizes sustainable agribusiness.

With a rigid organization, attentive workers, and machines that don’t stop for a second, the production of foam slippers like Crocs in India demonstrates how the factory transforms raw material into pairs ready for export.