Brazilian government-controlled oil and gas giant Petrobras on Wednesday told shareholders that its board approved the early termination of Caio Mário Paes de Andrade’s tenure as chief executive. The move was expected, as the new administration had already announced that it would nominate outgoing Senator Jean Paul Prates of Rio Grande do Norte for the position.
João Henrique Rittershaussen, the company’s head of production development, will step in temporarily until the new CEO is approved. With a background as an electrical engineer, Mr. Rittershaussen has worked at Petrobras for 35 years and occupied various managerial positions.
Mr. Andrade also stepped down from his board seat. If a majority of the collegiate agrees to elect Mr. Prates as his replacement, the change in leadership may happen fast, with the current board electing the new president of the company in an extraordinary meeting. That, however, can only happen after the company’s people committee vets Mr. Prates, a process that can take about 30 days.
Mr. Andrade was the fourth Petrobras CEO named by the Jair Bolsonaro administration. The changes at the helm of the company were always motivated by hikes in fuel prices.
Mr. Bolsonaro wanted to hold down fuel prices in the country as he believed that higher gas costs would hinder his re-election effort. Still, the company never broke from its pricing policy — which pegs fares to international oil price fluctuations. Mr. Bolsonaro lost the 2022 election to Luiz Inácio Lula da Silva by the tightest margin in Brazilian democratic history.
Since the turn of the year, Petrobras has been bleeding market value as markets worry about the direction in which the new government will take the state-controlled company.
Without further details, President Lula said he wants to change the company’s pricing policy and make it “be calculated in reais” instead of dollars. Mr. Prates recently told the press that Petrobras’s pricing policy will be “adjusted” to the upcoming government’s directions.
The new administration extended, for 60 days, social security tax exemptions on fuels as a way of preventing prices at the pump from going up.
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