Petrobras CEO touts offshore oil as major national interest

Magda Chambriard, the newly appointed chief executive of Petrobras, stated that the exploration of the Equatorial Margin basin off Brazil’s coast is a matter of national interest. This offshore area, located near Guyana, is considered Brazil’s most promising frontier for oil exploration but is also environmentally sensitive.

Chambriard, who took over as CEO after the previous chief executive Jean Paul Prates was fired by President Luiz Inacio Lula da Silva, aims to escalate discussions about the Equatorial Margin region to the National Council of Energy Policy (CNPE), an advisory body to the president.

In her first public remarks since assuming the role on Friday, Chambriard emphasised the importance of replenishing Petrobras’ oil reserves, and exploring the Equatorial Margin is part of that effort.

However, the state-controlled oil company has been waiting for about a year for Brazil’s environmental agency Ibama to rule on an appeal after it was denied a license to drill in the area due to potential impacts on the environment and Indigenous peoples.

The Equatorial Margin basin is considered a potential bonanza because it shares geological similarities with nearby Guyana, where Exxon Mobil is developing significant oil fields.

Chambriard believes that the decision to explore the area should not be left to a single government body, suggesting that the discussion should consider the potential benefits to Brazilian society. She noted that any deliberation by the CNPE would ultimately be signed off by the president.

Echoing her predecessor’s statements, Chambriard promised investments in the refining and fertiliser sectors, provided they are profitable for the company. She also committed to following governance and compliance rules while aiming to overcome roadblocks by engaging with independent oversight bodies like Brazil’s federal audit court (TCU).

Regarding fuel pricing, Chambriard stated that Petrobras would maintain its current market-based policies for gasoline and diesel sales, balancing profitability with meeting shareholder needs. She vowed to better insulate fuel prices from international market volatility.