Industry executives decline invitation to Petrobras after Pires and Landim withdrew

The government faces difficulties in finding new candidates in the market for the presidency and the board of directors of Petrobras. Executives with experience and recognition in the oil and gas sector approached for an eventual nomination are declining the invitation.

These are professionals with a more technical profile and experience in the energy area of ​​directorates of public bodies, ministries and regulatory agencies. The perception is that the cost-benefit ratio of taking the positions in charge of the state-owned company is not worth it at this time.

In part, it weighs against the wear and tear with the double withdrawal of consultant Adriano Pires, from the CBIE (Brazilian Center for Infrastructure), and the president of Flamengo, Rodolfo Landim, who would occupy the presidency of the board of directors.

However, there are also administrative hurdles. According to sources heard by the report, a new manager needs at least three months to understand Petrobras’ operational structure. As the government is at the end of its term, the deadline is too short to leave any legacy that could be relevant.

The risk of political pressure also bothers, since it is clear to the sector that the new incumbents will face opposition from President Jair Bolsonaro (PL) himself in relation to the fuel price policy.

The government would have to present new names by the 13th, the date of the shareholders’ meeting and, given the tight deadline, it has been advised to look for someone among its staff or within Petrobras’ own staff to fill the vacancies.

In this context, the name of the special secretary for Debureaucratization, Management and Digital Government, of the Ministry of Economy, Caio Paes de Andrade, who has already been interviewed for the position, according to a government source, was once again aired.

There are not many names with experience in oil and gas in Bolsonarista management. Some well-known professionals include senior members of the PPSA (Pré-Sal do Petróleo SA), which is chaired by José Eduardo Vinhaes Gerk, with more than 30 years in the area, and some other people in positions in the energy area, such as José Mauro Coelho, director of studies for oil and gas at EPE (Energy Research Company).

On Tuesday afternoon (5), a meeting dedicated to debating substitutes ended without a definition.

The impasse in the choice of new presidents occurs after a succession of disagreements triggered by Bolsonaro himself. He fired General Joaquim Silva e Luna from the presidency of Petrobras on March 28, after disagreeing with a strong price adjustment promoted by the state company.

Subsequently, those appointed by the government began to be questioned by the market. Landim declined the invitation on Sunday (3) claiming that he needed to dedicate himself to Flamengo. On Monday (4), Pires stated that he had no way of reconciling the work of a consultant with the presidency of the state-owned company.

However, there would be a risk of the names being questioned at the shareholders’ meeting that approves the nominations. Such as sheet showed, those appointed to replace General Joaquim Silva e Luna have a strong connection with Carlos Suarez, owner of Termogás, which controls piped gas distributors in regions not yet served by pipelines, such as the Federal District.

Pires, in turn, in order to comply with the State-owned Companies Law and Petrobras’ governance rules, would have to completely get rid of his consultancy, even arranging for the dismissal of his son, his successor in the business.

The government’s challenge is to find someone who not only accepts but passes the regulatory scrutiny.