MercoPress. South Atlantic News Agency

Brazil sacks Petrobras CEO yet again

Paes would become the fourth Petrobras chairman under President Bolsonaro

Brazil's Government has replaced yet again the chairman of the state-run oil company Petrobras in which private investors also have a share.

According to a statement from the Ministry of Mines and Energy released Monday, Caio Mário Paes de Andrade takes over from José Ferreira Coelho who lasted barely 40 days on the job.

The ministry's document also underlined that the country “is currently experiencing a challenging moment, arising from the effects of hydrocarbons' extreme volatility in international markets.”

The communiqué also noted several geopolitical factors had had an impact on the price of gasoline, diesel, and energy components, and, in order to maintain the necessary conditions for the growth of employment and income of the population, it is necessary to strengthen the investment capacity in the private sector.

“Working and contributing to a balanced scenario in the energy area is fundamental for the company's value generation, generating benefits for society as a whole,” said the ministry.

Paes de Andrade has a degree in social communication from Universidade Paulista, a post-graduate degree in administration and management from Harvard University, and a master's degree in business administration from Duke University. Up until Monday, he had been serving as special secretary for Debureaucratization, Management, and Digital Government at the Economy Ministry of Economy, where he ran GOV.BR Platform in addition to being on the Board of Directors of the Brazilian Agricultural Research Company (Embrapa) and Pre-Sal Petróleo S.A (PPSA).

Between 2019 and 2020, Paes de Andrade was president of the Federal Data Processing Service (Serpro).

In the private sector, he worked in information technology and in the real estate market, as well as being a founder and board member of the Fazer Acontecer Institute (Make It Happen Institute).

The ministry explained that Paes de Andrade has the necessary qualifications for the position and overcome the challenges ahead while “promoting continuous administrative improvement and increasing performance of the company, without neglecting the governance, environmental and, especially, social responsibilities of Petrobras.”

Paes de Andrade is the fourth Petrobras chairman since President Jair Bolsonaro came to power, after Roberto Castelo Branco, Joaquim Silva e Luna, and Ferreira Coelho.

Petrobras said in a statement it had received a note from the Ministry of Mines and Energy Monday requesting steps to convene an Extraordinary General Meeting to promote Coelho's removal and to appoint Paes de Andrade instead.

Last week, when asked about the possibility of replacing Petrobras' CEO, Bolsonaro replied: “Ask Adolfo Sachsida,”

“He is the Minister of Mines and Energy and deals with this. And I make it very clear: all my ministers, all of them, without exception, I give carte blanche to enforce whatever he thinks is best for his ministry to serve the population.”

Petrobras' Board now needs to approve Paes' appointment. “Considering that José Mauro Ferreira Coelho was elected by the multiple vote system in the Annual General Meeting held last April 13, if approved by the general meeting, his removal will imply the removal of the other members of the board elected by the same process, and the company must hold a new election for these positions, pursuant to Article 141, paragraph 3, of Law 6.404/76,” says the note.

(Source: Agencia Brasil)