Petrobras CEO Says Rousseff Refused Offer To Resign On Scandal
RIO DE JANEIRO, Dec 17 (Reuters) - Petroleo Brasileiro SA's Chief Executive Officer Maria das Graças Foster said on Wednesday that she had offered to resign because of a widening alleged bribery scandal but that Brazil's President Dilma Rousseff had turned her down.
"I need to be investigated, we all need to be investigated, that takes time," Foster told journalists at company headquarters in Rio de Janeiro, referring to the U.S. and Brazilian legal teams hired to run an internal investigation.
"The president thought that I should stay," added Foster, who has been CEO for nearly three years, before which she headed up its gas and energy unit.
Questions about the CEO's future come as the scandal bites into the company's finances, operations, share price and $221 billion five-year expansion plan, one of the world's largest corporate spending programs.
Prosecutors allege that executives at Petrobras, as the company is known, conspired to inflate the price of refineries, ships, advertising and other goods and services. They also allege contractors then kicked-back a percentage of the inflated contracts to executives, politicians and political parties as bribes and campaign contributions.
To preserve cash and avoid new borrowing, Petrobras plans to slash investments in 2015 favoring an increase in output from existing areas rather than pumping money into the exploration of new prospects, exploration and production division chief Jose Formigli said.
"In principal spending will be lower in 2015 than in 2014," Foster said.
With Petrobras revenue equal to about 6 percent of Brazil's gross domestic product, a Petrobras slowdown could further hurt an already stagnant Brazilian economy.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Subsea7 Secures Contract to Service Woodside's Trion
- These Factors Helped Brent Oil Price Break Above $85
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- TotalEnergies to Acquire TLCS Eyeing Bayou Bend CCS Project
- Gaz System to Acquire Gas Storage Poland
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension