Petrobras Refinery Policy Attracts Scrutiny In Election Year

Refinery purchases and policy for Brazil’s state-controlled oil company Petrobras have come under increased scrutiny ahead of the country’s October elections amid allegations of mismanagement. Former company president Sergio Gabrielli was recently brought before congress to explain the company’s policies following revelations earlier in the year that the company was forced to pay more than $500 million in fines to a former Belgian partner after that company opted to leave a partnership in Petrobras’ refinery in Pasadena, Texas. The revelations stirred up suspicions among investors and also brought Petrobras’ delayed Abreu e Lima refinery in Pernambuco state into greater focus. That project has suffered from cost over-runs and postponed investment by Venezuelan partner PdVsa.