New Petrobras Chief Wants to Oust Board Members

January 11, 2019

World Energy Reports LLC.

The new chief executive of Brazil's state-controlled oil company Petroleo Brasileiro SA is pushing for the ouster of two board members, newspaper Valor Economico reported on Friday.

Citing unnamed sources close to the matter, Valor said CEO Roberto Castello Branco is trying to push out independent board members Segen Estefen and Durval Santos, whose terms end in 2020.

The board is expected to decide soon on a "transfer-of-rights" dispute with the government, which is worth billions of dollars and relates to a promising offshore oil area. With the departure of Estefen and Santos, the new government would name four of 11 board members at Petrobras, as the company is known, given the recent resignation of two other board members.

Such an abrupt turnover for theoretically independent board members underscores long-standing corporate governance questions for the hugely influential oil company, which past governments have often used as a blunt tool for economic policy.

Petrobras did not immediately reply to a request for comment.

Economy Minister Paulo Guedes has railed against the state's outsized role in the Brazilian economy, even proposing that Petrobras and other state-run firms be privatized or split up.

Preferred shares of Petrobras slipped 1.2 percent in early trading, more than the 0.2 percent decline of the benchmark Bovespa stock index.

Earlier this week, Petrobras said in a filing that the country's audit court was analyzing a potential $14 billion payment from the government to the company to settle the transfer of rights issue. The Economy Ministry had denied reports that this would be the final number.

A government credit on that scale for Petrobras would add to headaches for Guedes and new President Jair Bolsonaro, who are struggling to rein in a gaping budget deficit.

(Reporting by Tatiana Bautzer Editing by Frances Kerry)

Floating Production Week delivers unrivaled overview, insight and analysis to the Offshore Floating Production Systems and Technology market

Floating Production Systems Report And Online Database

  • Monthly reports -- Our monthly reports provide a detailed snapshot of the business sector as of the middle of each month. More than 80 pages of data and industry analysis each month. Excel spreadsheets with each report enable subscribers to tailor the data presentation to their needs. In October of each year we provide a detailed five year forecast of production floater orders. In March of each year we fine tune the forecast and make revisions as needed.
  • Online database -- The online database is updated every day – with information direct from primary sources. In the database are details for 240 planned projects, 370 installations in service, 70+ floaters on order and 20+ floaters available. The database is fully searchable. Customized charts and spreadsheets can be directly produced from the database.
  • Customer support -- We are available to assist with technical questions about information in the database and reports -- and assist with any questions about using the database search tools.

Here's what you get!

Request a Free Sample Report