Ministry announces third change of president of Petrobras in Bolsonaro government | Economy

The Ministry of Mines and Energy announced in an official note on Monday night (23) the resignation of yet another president of Petrobras. After 40 days in office, José Mauro Ferreira Coelho was dismissed. He was the third president of the state-owned company in the Jair Bolsonaro government. The two previous ones, also fired, are Roberto Castello Branco and Joaquim Silva e Luna.

To replace José Mauro Coelho, the government decided to appoint Caio Mário Paes de Andrade, assistant to Minister Paulo Guedes at the Ministry of Economy, where he held the position of Secretary for Debureaucratization.

The nomination must be approved by Petrobras’ Board of Directors, in which the government has a majority as it is the company’s majority shareholder.

Caio Paes de Andrade, nominated for president of Petrobras — Photo: Disclosure

The three dismissed from the presidency of Petrobras were victimized by the progressive rise in fuel prices.

A pre-candidate for reelection, Jair Bolsonaro demanded that prices be contained. The president called the state-owned company’s profit “rape” and pressured the company not to readjust prices.

But Petrobras is subject to the criterion of international parity, a policy adopted by the Michel Temer government in 2016 that makes the price of fuels vary according to the price of a barrel of oil on the international market and fluctuations in the dollar.

On the 15th, when asked about the eventual resignation of José Mauro Ferreira Coelho, Bolsonaro replied: “Ask for Adolfo Sachsida”, who days earlier had replaced Bento Albuquerque – also fired – as Minister of Mines and Energy.

In April, Caio Paes de Andrade was even quoted to preside over the state-owned company, after economist Adriano Pires had refused an invitation to occupy the position. At the time, the government was looking for a successor to Joaquim Silva e Luna.

According to the ministry’s note (Read the full text at the end of this report), Andrade holds a degree in social communication from Universidade Paulista, a postgraduate degree in administration and management from Harvard University and a master’s degree in business administration from Duke University.

“Therefore, the nominee has all the qualifications to lead the Company to overcome the challenges that the present situation imposes, increasing its reputational capital, promoting the continuous administrative improvement and the growing performance of the Company, without neglecting the responsibilities of governance, environment and , especially, social of Petrobras”, says the text.

According to a note from the Ministry of Mines and Energy, “several geopolitical factors known to all result in impacts not only on the price of gasoline and diesel, but on all energy components”.

“In this way, in order to maintain the necessary conditions for the growth of employment and income for Brazilians, it is necessary to strengthen the investment capacity of the private sector as a whole. Working and contributing to a balanced scenario in the energy area is fundamental for the generation value of the Company, generating benefits for the whole society”, says the text.

José Mauro Ferreira Coelho is the third president to be fired by the Bolsonaro government.

The first to take charge of the state-owned company during the government of President Jair Bolsonaro was economist Roberto Castello Branco, appointed shortly after the 2018 elections.

Castello Branco was appointed to the post in January 2019 and fired in February last year by the president, who claimed to be dissatisfied with the fuel price readjustments during the economist’s administration.

The name appointed to replace Castello Branco was General Joaquim Silva e Luna. The military took office in April 2021 and remained in the post until March this year.

The general remained in office for 343 days and was fired in April this year for having followed the market logic for setting prices.

After Silva e Luna left, the government even indicated the names of economist Adriano Pires and businessman Rodolfo Landim to assume command of the state-owned company, however, both informed that they could not assume the positions.

In April, the government appointed José Mauro Coelho to take charge of the state-owned company. The executive assumed the presidency of Petrobras on the 14th of last month

Read the full note from the Ministry of Mines and Energy:

Official Note – Presidency of the Petrobras

The Federal Government, as the controlling shareholder of Petróleo Brasileiro SA – Petrobrasparticipates that it decided to change the Presidency of the Company.

The Government consigns its thanks to President José Mauro for the results achieved in his administration, in the face of Petrobras. Brazil is currently experiencing a challenging moment, due to the effects of the extreme volatility of hydrocarbons in international markets.

Additionally, several geopolitical factors known to all result in impacts not only on the price of gasoline and diesel, but on all energy components. Thus, in order to maintain the necessary conditions for the growth of employment and income for Brazilians, it is necessary to strengthen the investment capacity of the private sector as a whole. Working and contributing to a balanced scenario in the energy area is essential for generating value for the Company, generating benefits for the whole of society.

Thus, the Federal Government decided to invite Mr Caio Mário Paes de Andrade to exercise the position of President of the Petrobras. Mr. Caio Paes de Andrade holds a degree in Social Communication from Universidade Paulista, a postgraduate degree in Administration and Management from Harvard University and a Master’s degree in Business Administration from Duke University.

Therefore, the nominee has all the qualifications to lead the Company to overcome the challenges that the present situation imposes, increasing its reputational capital, promoting the continuous administrative improvement and the growing performance of the Company, without neglecting the responsibilities of governance, environmental and, especially the social Petrobras.

Finally, the Government renews its commitment to respect the Company’s governance, maintaining compliance with the normative and legal precepts that govern the Petrobras.

Social Communication Advisory