Petrobras Probe Could Lead to Oil Firm Hiring More Foreign Contractors
RIO DE JANEIRO, Dec 30 (Reuters) - Brazil's state-run oil firm Petrobras said on Tuesday it may increase the number of foreign companies it works with after banning several Brazilian contractors because police have implicated them in a kickback scheme at the company.
Brazil's oil industry has been heavily protected since vast oil reserves were discovered off its coast last decade, giving a significant advantage to locally based companies.
A widening corruption probe by police, however, has implicated dozens of Brazilian construction firms in conspiring to inflate the cost of contracts with Petrobras and then kick back proceeds to executives, politicians and political parties as bribes and campaign contributions.
On Monday, Petrobras said it had frozen payments to 23 companies and banned them from bidding for future work.
This has left a potential squeeze on talent as Petrobras seeks to ramp up production from offshore discoveries as part of the oil industry's largest investment program.
In an emailed response to questions, Petrobras said it would look to hire companies able to offer competitive services, adding that "this could, eventually, involve foreign companies."
As for so-called local content rules, the company said that "if this becomes an obstacle to achieving targets, Petrobras will seek alternatives to resolve this issue."
(Reporting by Gustavo Bonato and Stephen Eisenhammer; Editing by Grant McCool)
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.
Operates 34 Offshore Rigs
Manages 10 Offshore Rigs
- Exxon, Petrobras Form Alliance To Develop Oil, Gas Projects (Dec 14)
- Natural Gas In Petrobras Pipelines Up About 23% In 2017 (Dec 05)
- Petrobras CEO Says To Discuss Refining Partnership With CNPC CEO (Nov 15)