Petrobras board approves new, Lula-appointed CEO

The board of directors of Petrobras, Brazil’s giant oil and gas company, on Thursday approved the nomination of outgoing Senator Jean Paul Prates, the government’s choice for the chief executive position.

Under Petrobras rules, Mr. Prates will take a seat on the board and the position of “interim” CEO. To be confirmed, his appointment must be approved by a general assembly of shareholders.

Since the beginning of the year, the state-controlled oil giant had been under the command of production development officer Henrique Rittershaussen, who temporarily took over the position following the departure of Caio Mário Paes de Andrade, who joined the government of São Paulo.

Among the conditions imposed by the company’s eligibility committee was the need for Mr. Prates to resign from his seat in the Senate. His term expires next week, and he did so just hours before the meeting.

A lawyer and economist, Mr. Prates is 54 years old and has more than 30 years of experience in the oil and natural gas sector, coordinating studies in the transition team that bridged the gap between the previous government of Jair Bolsonaro and the new term of Lula.

Mr. Prates became a senator after the resignation of Fátima Bezerra in 2019, for whom he was an understudy. 

At the head of the country’s largest state-owned company, Mr. Prates is likely to propose changes in Petrobras’ current pricing policy — not to end the peg with international rates but to find a way to delay and smooth out the impact of price increases on consumers’ pockets — and also the return of investments in refining and biofuels.

The company’s entry into green hydrogen and offshore wind energy segments are also among the new opportunities for Petrobras under Lula’s government.

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