On Thursday, Brazilian Supreme Court Judge Teori Zavascki, who was in charge of overseeing the corruption investigation against state-run oil giant Petrobras, died in a plane crash off the coast of Partay where he was vacationing. Prosecutors involved in the case previously stated that politicians were handsomely bribed to award government contracts to private companies while overcharging Petrobras. The plane crash comes as Zavascki was set to analyze the plea bargains of 77 Odebrecht executives, a construction firm that has admitted to paying over $1 billion in bribes to obtain contracts.
The Lavo Jato corruption investigations, also known as Operation Car Wash, into Petrobras, Brazil’s oil giant, shocked the energy sector and helped fuel one of the country’s worst recessions. Nonetheless, some analysts are optimistic that the industry can open itself up to foreign investors and domestic competition to once again generate prosperity.
“The energy industry in Brazil is on the verge of its biggest transformation in decades,” wrote Décio Oddone, former CEO of Petrobras, in his latest report for the Atlantic Council—Oil & Gas in Brazil: A New Silver Lining?
“Petrobras has never experienced such a profound transformation. In fact, this is the first time the energy landscape has significantly changed since Brazil became an industrial economy,” he noted in the briefing.