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RIO DE JANEIRO (Reuters) – Brazil's far-right presidential front-runner Jair Bolsonaro could revise the country's model of production-sharing contracts in its coveted pre-salt oil fields if he wins this month's election, newspaper Valor reported on Monday.
Presidential candidate Jair Bolsonaro is waiting for news conference in Rio de Janeiro, Brazil October 11, 2018. REUTERS / Ricardo Moraes
The poll leader ahead of the Oct. 28 run-off vote BNDES, Valor reported, quoting unnamed campaign sources, as Bolsonaro looks to overhaul the country's state-run entities.
Petroleo Brasileiro SA and Centrais Eletricas Brasileiras SA, Bolsonaro has recently changed tack.
A rival to a rivals camp of advisors, made up of military generals, Petrobras shares in the wake of Petrobras shares in the wake of Petrobras shares Bolsonaro's first-round win.
Bolsonaro's campaign did not immediately respond to a request for comment.
Petrobras shares were up 2.2 percent in late morning trading.
Bolsonaro maintained a wide lead over his leftist rival Fernando Haddad in a second election poll looking at votes in the run-off vote that was published on Monday. The Ibope poll showed that Bolsonaro had 59 percent of vote support, compared to Haddad's 41 percent.
Brazil's production-sharing contract for its pre-salt oil fields was rolled out by the leftist Workers Party, which ran Brazil for 13 of the last 15 years, and has been blamed by many for a weak economy and endemic graft.
Reformed by the center-right government of Michel Temer, who took office in 2016 after training President Dilma Rousseff was impeached, the production-sharing model has been successful, luring oil majors like Exxon Mobil Corp. Chevron Corp., Repsol SA, Royal Dutch Shell Plc, and BP Plc.
Higher oil prices and the need to replace shrinking reserves have boosted oil majors' appetites for costlier offshore ventures, pumping much-needed money into Brazil's coffers.
The Valor article did not give details on how Bolsonaro would like to share the production-sharing model, but cited campaign sources who said that it was to attack some of the political abuses perpetrated by previous administrations.
Under Rousseff, Brazil 's government used the BNDES to offer loans to countries like Venezuela, Cuba and Mozambique that they would use to contract Brazilian firms.
The Brazilian government, under Rousseff, had agreed to act as the guarantor of the loans. The funds were used by Venezuela and Mozambique in Brazil.
In May, Brazil said it would continue to insist Venezuela and Mozambique pay back nearly 1 trillion reais ($ 281.05 million) in loans they defaulted to BNDES and Switzerland's Credit Suisse.
Reporting by Gabriel Stargardter; Editing by Marguerita Choy
