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Did the Brazilian Government make a good decision?

image credit: Rafael Herzberg
Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

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  • Feb 23, 2021

Did the Brazilian Government make a good decision?

The change of president of Petrobras and the announced "next move being the electric sector", encourage us to question about the decision-making process conducted considering two alternatives:


The president and his ministers (mines and energy and economy) evaluated the situation of Petrobras, analyzed its results vis-à-vis the metrics established in its business plan and came to the conclusion that its leader "did not comply", and should be dismissed.


The president, himself, decided to dismiss the president of Petrobras, due to his personal assessment that the price of oil products supplied by the company is "abusive" and by the Petrobras president's statement that the company "has nothing to do with the demands of truckers ".

The Petrobras Board, which should be the body responsible for assessing the results achieved by the CEO, COO, and their upper managers team, recommending the appropriate decisions, was not even consulted. On the contrary, board members are being "invited" to "accept" the a new president of the state-owned company already chosen by the president of Brazil (without their participation).

The conclusion is: the way the country is "structured", there are no sustainable conditions to control companies - such as Petrobras - with professionalism, objectivity, transparency and compliance.


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