Geopolitical Implications of Petrobras' Divestment Plan:Energy Security and Sovereignty

Abstract

Petrobras is Brazil’s largest state-owned company and manages one of the most strategic commodities in the global capitalist system: oil. As the primary source of energy in Brazil’s energy matrix—largely due to the country’s predominantly road-based transportation system, which relies heavily on diesel and gasoline—Petrobras occupies a central role in national energy security. Since 2016, following the indirect change in the presidency, the company’s strategy shifted toward prioritizing shareholder returns over its geostrategic potential. Under the Divestment Plan, Petrobras began focusing on Exploration and Production (E&P) to export crude oil while importing its derivatives, thereby neglecting the domestic refining sector and potentially increasing Brazil’s energy vulnerability. This article examines the extent to which Petrobras’ Divestment Plan affects national energy security. To this end, we conduct an analysis of data on Brazil’s oil management, including reserves, production, refining, imports, and exports. We also synthesize the concept of energy security applied in this study, relating it to the empirical data. Our findings highlight that the extreme financialization of Petrobras carries significant geopolitical implications for Brazil’s energy security and sovereignty.