Gabrielli to Remain Petrobras CEO under New Govt

RIO DE JANEIRO (Dow Jones Newswires), Dec. 29, 2010

Jose Sergio Gabrielli, chief executive of Brazilian oil and gas giant Petrobras, will remain in his current position under Brazil's next government, Brazil President Luiz Inacio Lula da Silva said Wednesday.

Brazil's president-elect, Dilma Rousseff, has confirmed that Gabrielli will stay at the helm of the state-controlled company during her government, Lula said during a speech to mark the start of construction of a new Petrobras oil refinery in Ceara state, northeast Brazil. Rousseff, who like Lula is from the Workers' Party, known as PT, will take office on Jan. 1.

Gabrielli, Petrobras' CEO since July 2005, has overseen the company's move into presalt oil and gas production as part of a plan to double the company's oil output by 2020 from current levels of about 2 million barrels a day, entering the ranks of the world's biggest producers. During Gabrielli's presidency, Brazil became self-sufficient in oil production. It will also stop importing certain essential oil derivative products by 2017 after several new oil refineries come on stream.

Gabrielli also gained prestige from Petrobras' successful capitalization plan, involving a share sale that raised about $70 billion in September for the company's development program, the world's biggest-ever share sale.

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