Petrobras lobbies Brazilian government to halt ANP gas reforms

Petrobras is pushing key officials in the Brazilian federal government to halt regulatory proposals by the National Agency of Petroleum, Natural Gas and Biofuels, known as the ANP. The agency seeks to spur competition in the natural gas market, which could squeeze the state-controlled producer's margins.

The ANP is proposing broader third-party access to pipelines and processing units, an overdue tariff revision for transport infrastructure, and a mandatory gas-release program to auction volumes controlled by dominant players. During a recent public hearing on the gas release mechanism, the agency presented data showing that Petrobras buys gas at the wellhead for $3.80 per million BTU and resells it to distributors and free consumers for $12.40 per million BTU.

CEO Magda Chambriard took the company's objections to a meeting at the presidential palace with the ministers of the Chief of Staff, Planning, Finance, and the Attorney General of the Union. The Ministry of Mines and Energy did not attend the meeting. Mines and Energy Minister Alexandre Silveira continues to support the ANP's plan to reduce market concentration.

Technical staff at the ANP concluded that Petrobras remains dominant across the integrated network and that existing rules fail to foster competition. The regulatory pressure comes as research by economist Cloviomar Cararine of Dieese showed Petrobras achieved a first-half profit margin of 29.15%, surpassing Saudi Aramco's 25.48%.