The CEO of Petrobras will lead Brazil’s state-owned oil and gas producing company in a short tenure ahead of a possible change in corporate strategy under incoming President Luis Inacio Lula da Silva. resign.
Petroleo Brasileiro, officially known as the group headquartered in Rio de Janeiro, said on Tuesday that Caio Mario Páez de Andrade will join the incoming administration of the newly elected governor of Sao Paulo state.
In a statement, Petrobras said it will continue in its current role in the coming weeks and will “pay particular attention to any changes in command taking place at the company.”
His departure is the latest change at the top of Latin America’s largest hydrocarbon supplier, a key pillar of Brazil’s economy with a stock market valuation of $69 billion.
Petrobras has four chief executives in less than two years after outgoing President Jair Bolsonaro sacked the previous three leaders following frustration over rising fuel prices.
Paez de Andrade, who became prime minister in June, was a former employee of Bolsonaro’s economy ministry.
The move paves the way for a new candidate to be chosen by Lula, a veteran leftist who will return to the presidency for a third time on January 1 after an absence of more than a decade.
As Petrobras’ controlling shareholder, the Brazilian government, which owns a 37% stake and has a majority of voting rights, can effectively appoint a boss.
Lula said he hopes Petrobras will expand its refining capacity and play a bigger role in the transition to low-carbon energy through investments in areas such as renewable energy and biofuels.
The 77-year-old former metalworker has also criticized the company’s policy of moving domestic prices of gasoline and diesel in line with international prices.
However, many investors are PT. Lula’s Workers’ Party (PT.
Petrobras was at the center of a massive corruption scandal called PT Rules. lava jatoor the car wash that has plagued dozens of businessmen and politicians.
Also, under President Dilma Rousseff, who was elected to succeed Lula, pressure for subsidies on fuel costs led to heavy debt.
Since then, the group has reformed its corporate governance, sold non-core assets such as refineries and gas stations, and focused on deepwater oil drilling in its abundant offshore reserves.
However, it has come under political criticism over its large profit and dividend payments.
São Paulo-listed Petrobras preferred shares have fallen more than a fifth since Lula’s narrow victory over Bolsonaro in the elections at the end of October, trailing the local stock index.
