ANP Chief Décio Oddone Stepping Down

Says the modernization of Brazil’s O&G sector calls for a new type of manager, will remain in office until a replacement is named

The director general of Brazil’s powerful O&G regulatory body, the National Petroleum Agency (ANP), Décio Oddone, announced on Wednesday (Jan. 15) he would be leaving his job soon, saying the industry in the country had undergone deep transformation and now it was time for new leadership.

In a letter written earlier this month published on the Agency’s website, he affirmed the country “had finally substituted a monopoly for an industry” and that “the benefits for society in terms of investments, access to cleaner fuels, jobs, income, fair and transparent tax collections and prices will be immense.” He urged the continued modernization of his own agency to accompany the transformation.

The following is Oddone’s letter addressed to President Jair Bolsonaro and MME Minister Bento Albuquerque stating that he will anticipate the end of his term at the agency.

“Brasilia, January 6, 2020

Honorable President of the Republic Jair Messias Bolsonaro,

Honorable Minister of Mines and Energy Bento Albuquerque,

The oil, gas and biofuel industry in Brazil is experiencing a unique moment. In 2016, when I took over the board of directors of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), the sector was going through its biggest crisis. Exploration and production required new rules. The supply and natural gas segments, twenty years after the end of the monopoly, remained concentrated. The biofuels area were born out of difficult times. The challenges were immense. More than three years later we can celebrate the success of the measures adopted under the guidance of the National Energy Policy Council (CNPE).

The set of auctions represented a milestone for the resumption of the oil and gas industry in Brazil, which is now definitely changing. With measures such as rounds, permanent supply, stimulation of the sale of mature fields and studies for the use of resources beyond the 200 mile limit, Brazil has returned to the international oil scene. And returned in style. In less than ten years it should be among the top five producers and exporters in the world.

At the same time, the main steps were taken to create an open, dynamic and competitive market in the supply and natural gas sectors. The de facto refining monopoly and concentration on the gas market is finally coming to an end. The use of biomethane has been regulated. The biofuels sector is beginning to recover. Fuel prices have been made transparent and now gasoline and diesel prices are more in line with those prevailing in the international market. Gasoline quality is being matched to international standards.

The actions taken have allowed the sector to undergo its biggest transformation. The country is finally replacing a monopoly with an industry. The benefits for society in terms of investments, access to cleaner fuels, jobs, income, fair and transparent tax collections and prices will be immense.

ANP’s management is in the process of modernization, simplification, accelerating its processes and increasing transparency. Board meetings are now held publicly and are open to the public. The issues of competitiveness, price transparency and fiscal regularity became part of the agenda. The budget is being decentralized. The necessary untying of the technical areas is under evaluation.

I never belonged to any group or had a patron. And I have always believed that a public office should be exercised only as long as the associated mission is to be fulfilled.

The process of major changes in the industry, which I have been keen to participate in, has ended with the latest auctions and the identification of the necessary actions to remove regulatory constraints and stimulate competition in the automotive fuel supply, distribution and resale sectors, aviation fuel, cooking gas and natural gas.

With this, I fulfilled the mission undertaken in 2016: to contribute with honesty, transparency and public spirit to the development of the biggest transformation ever produced in the oil and gas sector in Brazil.

A new phase begins. Now is the time to adjust the settings on this new model. As term of office does not always match the cycles of change, I believe it is time to begin the process of creating a board of directors that will approve the regulatory changes that will underpin the transformations we have begun to build. Different challenges require professionals with different characteristics. There were no changes in the composition of the ANP’s board of directors in 2019. However, three new directors should be appointed by 2020. Thus, I decided to anticipate the end of my term, which would last until December, while remaining in office long enough for approval of my replacement. In this way the first position to be appointed becomes that of managing director.

With the major transformations in the sector underway, derived from energy policy decisions, and the shift in focus from actions to the regulatory environment, I believe this is the way I can best contribute to the consolidation of the process we are going through, a project in which I believe and have been dedicated to these last  few years.”

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