Petrobras appoints new chairman; Prates formalized as CEO

Petrobras headquarters, in Rio de Janeiro. Photo: Donatas Dabravolskas/Shutterstock

The Luiz Inácio Lula da Silva administration has taken another step toward promoting its desired changes at state-controlled oil and gas major Petrobras. Shareholders have elected six names proposed by the federal government to the company’s board of directors.

Pietro Mendes was appointed Petrobras chairman in Thursday’s meeting, despite having previously been deemed unfit to take office.

Mr. Mendes is the current secretary for oil, natural gas, and biofuels at the Mines and Energy Ministry — the reason he was deemed ineligible to take a seat on the Petrobras board. Sérgio Rezende and Efrain Cruz, also nominated by the Lula government, were also considered unfit in accordance with Petrobras’s bylaws — but both were appointed to board seats in today’s meeting.

Mr. Rezende is currently a member of the national board of the Brazilian Socialist Party (PSB), and Mr. Cruz is the executive secretary of the Mines and Energy Ministry. Occupying both roles is a violation of the company’s eligibility criteria.

Jean Paul Prates was confirmed as Petrobras CEO after occupying the role on an interim basis. Vitor Saback and Bruno Moretti were the other government nominees confirmed as new board members.

Meanwhile, minority shareholders re-elected José João Abdalla Filho and Marcelo Gasparino, beating another two Lula nominees.

The government has a very different vision for Petrobras when compared to its administration under former President Jair Boslonaro. Lula has said the oil and gas company has to reclaim its responsibility to the Brazilian population, and the president has criticized Petrobras’s international-pegged fuel pricing policy, as well as asset divestments agreed upon during the Bolsonaro administration.

Mines and Energy Minister Alexandre Silveira recently confirmed the company will make changes to its pricing policy, one which takes domestic market factors into account. Now, with a majority on the Petrobras board, this goal is within touching distance.

Lula has declared that Petrobras should return to being a major investment company, opposing disinvestments agreed in recent years. The president expressly disagrees with Petrobras selling its 51 percent stake in gas pipeline company Transportadora Brasileira Gasoduto Bolivia-Brasil (TBG).

“Petrobras was not made to export crude oil, Petrobras is not just an oil company, it is an energy company, it has to be concerned with gas, diesel, biodiesel,” the president said.

At the same meeting, shareholders approved a total of BRL 44.98 million (USD 9 million) in remuneration for its officers for the next year.

Maria Luiza Dourado

Maria Luiza is a business and tech reporter. She has been published by Pequenas Empresas & Grandes Negócios, TC, and Olhar Digital, and has experience in real-time coverage of financial markets.