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Andrade’s Petrobras Resignation Paves Way For New CEO

BRAZIL
  • Petrobras’ board has approved the early termination of Caio Mario Paes de Andrade’s term as the company’s CEO, effective as of today, according to filing. Reports suggest Andrade will now take a job with Sao Paulo state’s new government.
  • On Tuesday the government officially appointed Brazilian Senator Jean Paul Prates to Petrobras’s board of directors, a necessary step to taking over as CEO. The news comes at a time investors are concerned about growing political interference in the oil giant.
  • Andrade’s resignation allows the company’s current board, where a majority of members were appointed by ex-President Jair Bolsonaro administration, to choose a CEO without holding a shareholders meeting.
  • The only step required is for Prates to be cleared by internal Petrobras committees, which could take weeks. The government is also expected to name new representatives to the board of directors, which will then have to be approved at a shareholders meeting. Itau expects changes to the board to be completed by the end of February.
  • Chief Production Development Officer Joao Henrique Rittershaussen will serve as interim CEO in the meantime, according to a filing.

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