Petrobras CEO Sees Need to Empower Middle Management

May 16, 2017

World Energy Reports LLC.
The head of Brazil's state-controlled oil giant Petrobras has called in an international consultancy firm to make middle management at the scandal-hit firm more proactive.
Petroleo Brasileiro SA last week posted a record first-quarter operating profit but Chief Executive Pedro Parente said the company's turnaround was still far from complete and one area where the company needs to improve is management indecision, which worsened with the revelations of the corruption scandal known as Operation Car Wash.
"What we are seeing is that mid-level managers are very afraid of taking decisions," Parente said at a conference in London on Tuesday.
"When we look in Brazil at managers of state-controlled companies this is always a problem, but for Petrobras after 'Car Wash' it became even worse," he said.
The massive corruption scheme, in which money was skimmed from overpriced Petrobras contracts and used to pay political bribes, has seen dozens of executives from Petrobras and its suppliers go to jail.
To help improve management confidence Petrobras has hired Amsterdam-headquartered consultancy Walking the Talk to try and resolve the issue.
"We are working with people to help us make our managers understand that we are there to make business, we are there to take risks," Parente said.
"It's difficult, it's a cultural problem," he added, explaining that the company was working on 29 initiatives to improve management structures and behaviour.
Parente, who has been at the helm of Petrobras for nearly a year, has faced fierce resistance from unions to attempts to streamline the company and sell off assets in order to pay down debt.
Reforms within the company and to Brazilian regulation concerning Petrobras have been achieved largely by empowering the new board and committees charged with turning the company around.
With the company on a surer footing it is now time to make broader changes to the way employees at the company work, Parente said.
"We have to make it simpler," he said.

(Reporting by Stephen Eisenhammer; Editing by Greg Mahlich)

Floating Production Week delivers unrivaled overview, insight and analysis to the Offshore Floating Production Systems and Technology market

Floating Production Systems Report And Online Database

  • Monthly reports -- Our monthly reports provide a detailed snapshot of the business sector as of the middle of each month. More than 80 pages of data and industry analysis each month. Excel spreadsheets with each report enable subscribers to tailor the data presentation to their needs. In October of each year we provide a detailed five year forecast of production floater orders. In March of each year we fine tune the forecast and make revisions as needed.
  • Online database -- The online database is updated every day – with information direct from primary sources. In the database are details for 240 planned projects, 370 installations in service, 70+ floaters on order and 20+ floaters available. The database is fully searchable. Customized charts and spreadsheets can be directly produced from the database.
  • Customer support -- We are available to assist with technical questions about information in the database and reports -- and assist with any questions about using the database search tools.

Here's what you get!

Request Free Trial