Page 4 - LatAmOil Week 14 2022

COMMENTAR
LatAmOil COMMENTARY Y LatAmOil

Brazilian President Jair Bolsonaro (File Photo)
Bolsonaro’s new

picks for Petrobras

The president has named two new nominees for the posts of CEO and chairman after his
original appointees came under fire, owing to questions about possible conflicts of interest

BRAZILIAN President Jair Bolsonaro’s plans did not address the concerns of the audit tri-
for a management shake-up at Petrobras, the bunal, which monitors public-sector spending,
WHAT: national oil company (NOC), have taken an about his ties to IOCs. However, he said he had
Bolsonaro has named unexpected turn over the last week. decided not to proceed because he did not have
industry veterans Coelho In late March, Bolsonaro had nominated enough time to transition away from his posi-
and Weber as Petrobras’ Adriano Pires, a prominent consultant and com- tion as founder and director of the Brazilian
next CEO and chairman. mentator who has about 30 years of experience Centre for Infrastructure (CBIE).
working in the oil industry, to serve as Petrobras’ This development looks all the worse because
WHY: next CEO. Just a few days later, though, Lucas similar concerns have surfaced about Rodolfo
The president’s original Furtado, a deputy prosecutor at Brazil’s Fed- Landim, a soccer magnate who was supposed
nominees had come un- eral Court of Accounts (TCU), urged judicial to serve along with Pires as Petrobras’ chairman.
der suspicion of conflicts
of interest. authorities to investigate the appointment on Landim was nominated to the post by the pres-
the grounds that Pires’ past experience as a con- ident in early March, but he backed out in early
WHAT NEXT: sultant for several international oil companies April as questions began circulating about pos-
If oil prices remain high, (IOCs) might constitute a conflict of interest. sible conflicts of interest. Those questions led at
fuel prices will continue Shortly thereafter, Pires withdrew his name least two consultancies, ISS and Glass Lewis, to
to be a campaign issue, from consideration for the post. He announced recommend that foreign investors submit neg-
to Bolsonaro’s detriment. his decision in a letter to Brazil’s Minister of ative proxy votes on his nomination, according
Mining and Energy Bento Albuquerque but to a report from O Globo.

P4 www. NEWSBASE .com Week 14 07•April•2022