From humble beginnings, Petroleo Brasileiro S.A. (Petrobras) became one of the biggest integrated oil and gas companies, acquiring a reputation for sound leadership and strong technical expertise. By the mid-2000s the business was frequently cited as among the very best managed national oil companies. In a very different position Petrobras was by 2016.
The firm was embroiled in a multi-billion dollar corruption scandal and was among the most indebted firms in the world. The decade-long corruption scheme reached the highest rates of business and Brazilian politics - Brazil's President, Dilma Rousseff, was the chairwoman of the Petrobras board from 2003 to 2010. Several senior Petrobras executives and Brazilian politicians had been detained on allegations of bribery and bid rigging and much more arrests were likely. In 2015 Petrobras was forced to write down the value of its assets by $14.9 billion and take a $2.1 billion bill for the scandal. Capital investments would be reduced over the next five years to be able to lessen debt and help regain investor confidence.
PUBLICATION DATE: January 01, 2016 PRODUCT #: TB0433-HCB-ENG
The Rise and Fall of Petrobras Case Study Solution
This is just an excerpt. This case is about STRATEGY & EXECUTION
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