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Petrobras shakes up trading unit amid increasing exports

July 17/2019

MOSCOW (MRC) -- Brazilís Petroleo Brasileiro SA is reorganizing its trading business, the company told Reuters, as the state-run oil firm seeks to best take advantage of an expected increase in oil and gas exports.

Petrobras, as the company is widely known, is dividing its marketing and trading division into a domestic unit and an international unit, the company said in a statement, after two sources told Reuters of the changes.

"Petrobras is splitting its Marketing and Trading area into Trading in Foreign Markets (CME) and Trading in Domestic Markets (CMI)," the company said. "The change aims to align Petrobras with movements in the sector and bring more synergies, innovation and agility to its trading unit."

Petrobras is ramping up oil and gas production in Brazilís so-called pre-salt area, located off the nationís southeastern coast, which in turn has led the firm to eye new export markets.

In May, Reuters reported that Petrobras would store crude in China to better respond to immediate demand by local refineries. In late June, Petrobrasí head of downstream operations said exports could increase by over a third "in the coming years."

While Petrobrasí trading area has been divided principally by product - such as crude and various fuels - the main division will now be between domestic and international markets, said the sources, who requested anonymity as they were not permitted to speak publicly.

The reorganization also comes as Petrobrasí trading operation confronts a major corruption scandal that has engulfed major commodities trading houses, including Glencore PLC , Trafigura, Mercuria Energy Group and Vitol SA.

In December, Brazilian prosecutors charged 14 people, including six former Petrobras employees, with taking part in a multimillion-dollar scheme to defraud Petrobras.

In June, Reuters reported that Petrobras managers, at least one of whom is still at the company, ignored previous warnings from employees about a fuel broker who prosecutors now say was a key actor in the scheme.

As MRC wrote previously, in H2 June, 2019, Petroleo Brasileiro SA said it had signed a deal with local antitrust regulator CADE regarding the proposed sale of some of its refining installations. According to a securities filing, the company said the agreement will allow for increased competition in Brazilís refining sector, by attracting new players to the business.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
Author:Margaret Volkova
Tags:crude and gaz condensate, petrochemistry, Petrobras, Brazil.
Category:General News
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