Brazil’s Ministry of Mines and Energy on Monday evening (May 23) released an official note reporting that the federal government, in its capacity as controlling shareholder of Petrobras, has decided to change the president of the state-run oil giant. José Mauro Ferreira Coelho, who took office 40 days ago, should be replaced with Caio Mário Paes de Andrade as president of the company.

In the note, the ministry thanked Ferreira Coelho for the results achieved by Petrobras in his tenure, but noted the country “is currently facing a challenging moment, arising from the effects of extreme volatility of hydrocarbons in international markets.”

Paes de Andrade is the fourth president of the state-owned company in the current government. Before him, the presidents were Roberto Castelo Branco, retired Army General Joaquim Silva e Luna, and José Mauro Ferreira Coelho.

The ministry reports it believes Paes de Andrade has the necessary qualifications to assume the presidency of Petrobras and overcome the challenges facing the current situation, “by promoting continuous administrative improvement and boosting the company’s growing performance without neglecting its governance, environmental, and, above all, social responsibilities.”

The swap, the note goes on to read, represents the government’s effort to renew its commitment of respect towards the governance of Petrobras.

Biography

In the federal government, Paes de Andrade currently serves as special secretary for Debureaucratization, Management and Digital Government at the Ministry of the Economy, where he is responsible for the GOV.BR Platform and is a member of the Board of Directors of the Brazilian Agricultural Research Company (EMBRAPA) and Pre-Sal Petróleo S.A. (PPSA). From 2019 to 2020, he was president of the Federal Data Processing Service (SERPRO). In the private sector, he worked in IT and real estate.

Petrobras

In a statement, Petrobras said it received a formal letter from the Ministry of Mines and Energy requesting arrangements to convene an extraordinary meeting for the dismissal and to elect a member of the Board of Directors to appoint Caio Mario Paes de Andrade to replace José Mauro Ferreira Coelho.

The document also requests that Paes de Andrade be subsequently assessed by the Board of Directors of Petrobras for the position.