Brazil's state-controlled Petrobras, still reeling from the Lava Jato corruption scandal and its monumental debt obligations, is banking on offloading subsidiaries and assets to restore its fortunes. The firm will pursue a 2023 divestment target of $26.9bn, focusing on its untapped deep-water pre-salt reserves and returning the company to financial health.
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"Should the decree's suspension or revocation be confirmed, the most immediate impact will be the uncertainty introduced into ongoing and new divestments, as [it will raise questions] to the legitimacy of the procedures followed to date and the ones to be followed after the Supreme Court's decision," says Ali El Hage Filho, a partner at Brazilian law firm Veirano Advogados.
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"The settlement of this dispute and the launch of the preparations for bidding the volumes in excess of the original 5bn boe is fundamental for balancing public accounts. The new government has this as one of their priorities for its first 100 days, so there are a lot of incentives for everyone to complete this process as soon as possible," says Filho.
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