Anna Hardy - ChloÃÂ© Gilles - Thomas Jouvel - Lucie Lambert - Manon Lauzet
Petrobras study case - Negotiation
Petrobras in Ecuador
On October 18, 2007, a new president from Ecuador was elected: Rafael Correa. He decided to increase state control over the oil industry. Petrobras is a public energy company operating in Ecuador since its 2002 acquisition of Perez Compac (Argentinean Company). Petrobras controlled significant Ecuadorian assets including exploration rights in two areas: Block 18 and 31. In 2005 this company had been accused of transferring a 40% stake for Block 18 without authorization. Furthermore, Block 31 was located in a protected rain forest area inhabited. It raised concerns about environmental damage and spurring several protests. But Petrobras had denied and stated that it respected all Ecuadorian laws.
At the beginning, in 1953 (date of company's foundation), Petrobras was a Brazilian company and was a vital symbol of national pride with as slogan "the oil if ours".
The Brazilian government had monopoly for all crude oil and gas production, refining and distribution. In 1997, government announces the end of the oil monopoly and opens the oil and gas markets to foreign investment. So, foreign ownership of shares was permitted. In response to that, in 2000, Petrobras began partially privatized with a new strategy which is to expand abroad.
Petrobras' International Expansion
Of course, Petrobras is not alone on the market and its goals of diversification and international expansion were shared with a lot of others companies in the oil industry. Petrobras needs to diversify its portfolio of assets and generate hard currency cash flow in order to be able to go abroad and building a strong position in the energy market in South America. Thanks to the acquisition of Perez Compac (Argentinean Company) in 2002, Petrobras had...