Reporting by Fabio Teixeira and Andre Romani, Reuters

RIO
EnergiesNet.com 12 07 2024

The Brazilian Mines and Energy Ministry appointed Petrobras (PETR4.SA), Chairman Pietro Mendes to a senior position at oil regulator ANP, the firm said on Wednesday, potentially kicking off a small shake-up at the state-run oil firm’s board.

In a securities filing, Petrobras confirmed the appointment reported earlier in the day by local newspaper O Globo, noting it is still pending approval from Brazil’s Senate and a formal nomination from President Luiz Inacio Lula da Silva.

The firm’s shares started to fall after an O Globo report, which said Lula was aware of the nomination, ending the session down some 0.6%, while Brazil’s equities benchmark Bovespa (.BVSP), was flat.

O Globo also reported that the government will nominate current board member Bruno Moretti to replace Mendes as chairman of Petrobras.

Petrobras did not mention any new appointment for chairman in its statement, and said Mendes will remain in his role during the confirmation process.

Mendes, who is also secretary of oil, natural gas and biofuels at the Mines and Energy Ministry, has been Petrobras chairman since early 2023, at the start of Lula’s government.

His dual role has been a headache for Petrobras. Mendes was briefly ousted as chairman in April after a Sao Paulo judge ruled it was a conflict of interest for Mendes to hold both positions, although he was reinstated six days later after an appeal.

Moretti, special secretary of governmental analysis, was also appointed to the Petrobras board early in Lula’s government.

He was one of the people under consideration to take on the role of Petrobras chief executive earlier this year, although that job ultimately went to Magda Chambriard.

The vacant spot on the board would be taken by lawyer Benjamin Alves Rabello, said O Globo. Petrobras also made no mention of Rabello in its statement.

Reporting by Fabio Teixeira in Rio de Janeiro and Andre Romani in Sao Paulo, Editing by Rosalba O’Brien and Diane Craft

reuters.com 12 04 2024