Brazil’s state-controlled oil giant, Petrobras, is to transform into a renewable energy powerhouse, under the guidance of new CEO, Jean Paul Prates, as appointed by President Luiz Inacio Lula da Silva. Prates is a senator for Lula’s Workers’ Party and was a point person on Lula’s energy team during the presidential campaign last year. Lula praised the selection, calling Prates an expert in the sector.
The aim behind appointing Prates is to stem the record dividends that Petrobras investors have been reported to enjoy, and instead focus on the production of renewables. Lula hopes that within the next 30 years, Brazil will be investing as much money in clean energy as it does in fossil fuels.
Lula is also expected to revamp local content rules or the percentage of goods and services for oil projects that need to be sourced from Brazil in order to boost domestic employment.
In a statement, Petrobras emphasises that Lula’s nominee is subject to internal governance procedures and the approval of the board.
