The brand of Brazil’s state-run Petrobras oil firm is seen at its headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio Moraes/File Picture
RIO DE JANEIRO, April 4 (Reuters) – Power advisor Adriano Pires has backed out of the Brazilian authorities’s nomination for him to take the helm at Petrobras, the nation’s Mines and Power Ministry mentioned on Monday, within the newest blow to succession plans on the state-run oil firm.
“It was clear to me that I couldn’t reconcile my consulting work with the train of Petrobras’ command,” Pires wrote in a letter revealed by the ministry on its web site.
Pires’ choice to show down the chief govt job got here a day after soccer magnate Rodolfo Landim declined a nomination to chair the board of Petroleo Brasileiro SA (PETR4.SA), as the corporate is formally identified.
Pires had been tapped by Brazilian President Jair Bolsonaro to take over as the highest govt of Petrobras on March 28, following disagreements between the far-right chief and present CEO Joaquim Silva e Luna over the corporate’s gasoline pricing coverage. learn extra
The federal government will now want to seek out appropriate replacements for the 2 high spots at Petrobras simply days earlier than the corporate’s April 13 annual shareholders’ assembly.
Pires’ choice to again out from the CEO job was reported earlier on Monday by Brazil’s O Globo newspaper. Most well-liked shares in Petrobras fell 1% after the O Globo article was revealed, however later recouped their losses.
Pires’ nomination had been going through inside compliance-related hurdles at Petrobras, as his consultancy, Rio de Janeiro-based CBIE, advises firms that do enterprise with Petrobras, two sources with information of the matter had beforehand informed Reuters.
An inside compliance committee had additionally really useful in opposition to Landim’s changing into the subsequent chairman on conflict-of-interest grounds, mentioned the sources, who requested anonymity to debate non-public inside deliberations.
Reached for remark, Landim mentioned that he determined to withdraw from the board nomination to be able to dedicate all his vitality to Flamengo, the Rio de Janeiro soccer membership he leads.
In a notice to shoppers, analysts at Brazil’s Itau BBA maintained their “outperform” ranking on Petrobras shares given what they described as robust fundamentals, however mentioned uncertainty on the high would create damaging noise.
“This uncertainty relating to the nominees to the chairman and CEO positions, arising so quickly earlier than the corporate’s subsequent basic shareholders’ assembly, will possible set off some volatility within the inventory this week,” the analysts wrote.
Reporting by Gabriel Araujo and Peter Frontini in Sao Paulo and Rodrigo Viga Gaier in Rio de Janeiro; Writing and extra reporting by Gram Slattery; Modifying by Marguerita Choy and Leslie Adler
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