Brazilian President-elect Luiz Inacio Lula da Silva might have to attend months to implement his plans for state-run oil firm Petrobras, because the chief government appointed by the present authorities goals to complete his time period in April, folks acquainted with his plans mentioned.
Till then, CEO Caio Paes de Andrade, put in by President Jair Bolsonaro in June to run the corporate recognized formally as Petroleo Brasileiro SA, plans to hold out the present authorities’s technique, mentioned the sources, requesting anonymity to debate non-public deliberations.
The standoff may add friction to a difficult transition between the right-wing Bolsonaro authorities and the incoming administration of leftist Lula, whose electoral victory final month has nonetheless not been acknowledged by the sitting president.
Lula has scheduled interviews this month with main candidates to interchange Andrade as Petrobras CEO, sources have advised Reuters, however the formal nomination, vetting, board approval and shareholder vote may drag on for months after his Jan. 1 inauguration. Within the meantime, the corporate’s new five-year marketing strategy, to be launched on Nov. 30 by present administration, will present little change in technique, sources mentioned, with round $70 billion of investments within the up to date plan.
Lula and his advisers have argued that Petrobras ought to increase investments in renewable energies and refineries, finish an asset sale program and stimulate extra regional growth. However sources say Andrade has no intention of backing off asset gross sales outdoors the core offshore oil and fuel enterprise, at the same time as Lula’s transition workforce has known as to droop such offers.
“Caio has mentioned that he’ll go till the top (of his time period) and that he’ll at all times do what’s greatest to generate extra worth for Petrobras shareholders,” mentioned one of many sources. One other supply mentioned Andrade isn’t anticipated to go away earlier than April, even when he ultimately comes beneath stress to take action.
To put in a brand new CEO with out Andrade’s resignation, Lula’s authorities should appoint its candidate to a board seat, get approval from a shareholder assembly the place it has a majority of votes, after which let the board select the CEO from its ranks. Bolsonaro, who swapped the CEO of Petrobras 3 times amid disputes over gasoline pricing, has not conceded defeat to Lula, though his chief of workers mentioned he has licensed the formal transition course of.
(Reuters * Reporting by Rodrigo Viga Gaier and Marta Nogueira/Aditional reporting by Sabrina ValleWriting by Ana Mano/Modifying by Brad Haynes and Marguerita Choy)
