***The following is a free translation of the resignation letter submitted by ANP Director Decio Oddone earlier this month***
His Excellencies President of the Republic Jair Bolsonaro and Minister of Mines and Energy Bento Albuquerque,
The oil, gas and biofuels industry in Brazil is experiencing a unique moment. In 2016, when I took over the directorate-general of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), the sector was going through its biggest crisis. Exploration and production demanded new rules. Twenty years after the end of the monopoly, the supply and natural gas segments remained concentrated. The biofuels segment was passing through 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 string of auctions represented a milestone for the resumption of the oil and gas industry in Brazil, which is now definitely reaching new heights. With measures such as the bidding rounds, permanent offer, stimulus for the sale of mature fields and studies for the use of resources beyond 200 nautical miles, Brazil has returned to the international oil scene. And it returned in style. In less than ten years, it should be among the five largest producers and exporters in the world.
At the same time, many steps were taken to create an open, dynamic and competitive market for the distribution and natural gas sectors. The de facto monopoly on refining and the concentration of the gas market is finally coming to an end. The use of biomethane has been regulated. The biofuels sector is starting to recover. Fuel prices started to be disclosed in a transparent way and now gasoline and diesel prices are more consistent with the international market. Gasoline quality matches international standards.
The actions taken allowed the sector to undergo its greatest transformation. The country is finally replacing a monopoly with an industry. The benefits to society in the form of investments, access to cleaner fuels, jobs, income, revenue and fair and transparent prices will be immense.
ANP’s management is in the process of modernizing, simplifying, streamlining and increasing transparency. Board meetings started to be held in a public and open manner. The issues of competitiveness, price transparency and fiscal regularity became part of the agenda. The budget is being decentralized. The necessary disconnection from the technical areas is under evaluation.
I never belonged to any group or had a political sponsor. And I have always believed that a public office should only be exercised while the mission associated with it remains to be accomplished.
The process of major changes in the sector, in which I participated diligently, ended with the last auctions and the identification of the necessary actions to eliminate regulatory restrictions and stimulate competition in the sectors of supply and the distribution and resale of automotive and aviation fuels, cooking gas and natural gas.
With that, I fulfilled the mission assumed in 2016: to contribute with honesty, transparency and public spirit to the development of the greatest transformation ever produced in the oil and gas sector in Brazil.
A new phase now begins. Now is the time to adjust the regulation to this new model. As the term of office does not always match cycles of change, I believe it is time to start the process of composing the board of directors that will approve the regulatory changes that will sustain the transformations that we have started to build. Different challenges demand professionals with different characteristics. There were no changes in the composition of the ANP board of directors in 2019. However, three new directors are expected to be appointed in 2020. Thus, I decided to anticipate the end of my term, which would run until December, remaining in office long enough for the approval of my replacement. Thus, the first position to be appointed becomes that of director general.
With the progress of major transformations in the sector, derived from energy policy decisions, and the change of focus from actions to the regulatory environment, I believe that this is the way in which I can best contribute to the consolidation of the process we have been going through, a project which I believe in and to which I dedicated these last years.
– ANP Director Decio Oddone