According to a Petrobras statement filed with the Securities and Exchange Commission (CVM), Borges will remain in charge of the company until a new president is elected and sworn in at the state-owned company.
Coelho’s likely replacement is Caio Paes de Andrade, Secretary for Debureaucratization at the Ministry of Economy. He was nominated for the position by the government a month ago, but the exchange ran into the legal procedures defined for the replacement.
A career employee, Fernando Borges has worked at Petrobras for almost 40 years, having held various managerial roles in the Exploration and Production area, including the Executive Management of Libra and the Executive Management of External Relations.
Between 2016 and March 2020, Borges also served as Director at the Brazilian Institute of Petroleum, Gas and Biofuels (IBP) and since April 2016, he has been acting as Director of the Brazilian Association of Oil Exploration and Production Companies since April 2016. Oil and Gas (ABEP).
Petrobras presidency in the Bolsonaro government
The presidency of Petrobras was vacant in the early morning, when the departure of José Mauro Coelho was formalized, who resigned after about a month of constant pressure from the government. He was the third executive to leave the presidency of the state-owned company under Jair Bolsonaro.
Coelho, who took office on April 14, commanded Petrobras for 68 days – it was the 2nd shortest time of management of the state-owned company since the end of the military dictatorship – and was the third executive in the Presidency of the Company in the Jair Bolsonaro government.
His departure had been awaited since May 23, when the Ministry of Mines and Energy announced that the third change in command of the company would take place. At the time, the ministry claimed that “several geopolitical factors known to all result in impacts not only on the price of gasoline and diesel, but on all energy components”.
The two executives who preceded José Mauro in the presidency of Petrobras – Roberto Castello Branco and General Joaquim Silva e Luna – also left the command of the state-owned company in the face of pressure from the government itself due to high fuel prices.
Petrobras’ pricing policy follows the same one adopted in 2016 by the Michel Temer government. It is subject to the criterion of international parity, which means that fuel prices take into account the price of a barrel of oil on the international market and also fluctuations in the dollar.
President Jair Bolsonaro, however, demanded that the three executives appointed by him to the command of Petrobras that fuel prices be contained. With an eye on re-election, he raised the tone of criticism and called the profit of the state-owned company “rape” and pressured the company not to apply readjustments.
Understand the rise in fuel prices