More than just a company, Petrobras is part of Brazil’s identity. It was founded in 1953, following a nationalist campaign proclaiming “The Oil is Ours!”—against the entreguistas who were accused of wanting to hand over Brazil’s national riches to foreign groups. Six decades later, Petrobras is Brazil’s undisputed largest corporation—being featured on the Fortune 500 list for 23 straight years.
‘Privatization’ remains a dirty word for millions until this day, as 55 percent of Brazilians reject the idea, according to recent polls. But is privatization really such a bad idea?
President Jair Bolsonaro, who used to call Petrobras a “strategic” asset to national sovereignty, seems to be growing fond of the idea. The government recently announced that Petrobras is selling off eight of its 13 oil refineries in the country—and Mr. Bolsonaro said his administration could go for a “wider privatization” of the company, without specifying exactly what that means.
The company’s current top brass, investors, and infrastructure experts envision a tremendous gain in efficiency were Petrobras to be privatized, especially as it would safeguard the company from the government’s political interference.
Petrobras went public during...
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