Brazil: José Mauro Coelho takes office at Petrobras

RIO DE JANEIRO, BRAZIL – The new president of Petrobras, José Mauro Ferreira Coelho, did not talk about changes in the fuel price policy when he took office on April 14. For him, maintaining parity with the international market is “necessary” for the country. “The practice of market prices is a necessary condition for creating a competitive business environment, for the attraction of investments, the expansion of the country’s infrastructure, and the guarantee of supply,” he said.

The company’s new chief executive promised to “continue the process of promoting competition in refining and supply” and, to this end, to make “disinvestments” in the sector.

He also promised, in an indirect response to the crisis that overthrew his predecessor, General Joaquim Silva e Luna, “greater integration with Congress, with the Federal Executive and with the Executive and Legislative Branches of the states”, that is, “a Petrobras that will work more outwards,” which included changes in the communication policy.

“I will make management that will value the improvement of communication, especially the improvement of external communication. We will seek greater interaction with society. We have to understand this company’s importance for Brazilians,” said Ferreira Coelho.

The new executive praised, in his speech, the type of management done after the Petrobras government, which aligned the price of fuels in Brazil to the international market price, giving up artificial control.

“In 2014, Petrobras’ gross debt was R$160 billion (US$34 billion). Today, less than R$60 billion makes room for investments,” he discoursed.

José Mauro Coelho also pledged to follow the company’s ongoing strategic plan, which runs until 2026. “This stronger and more valued Petrobras brings a greater return for its shareholder and the Brazilian society. More dividends are paid to the Union and more taxes paid to states and municipalities, leading to higher tax collection for these federative entities, to the benefit of the Brazilian citizen.

Coelho’s inauguration was attended by the Minister of Mines and Energy, Bento Albuquerque, and by the company’s other executives.

RESUME OF THE NEW PRESIDENT

Ferreira Coelho was nominated by the Brazilian government, Petrobras’ main shareholder, and elected president of the company on April 14 by the board of directors.

He replaces General Joaquim Silva e Luna, who stepped down after friction with the government of Jair Bolsonaro (PL) amid the increase in fuel prices following the rise in the international market, which was caused mainly by Russia’s war against Ukraine.

The new chief executive of the oil company has already been chairman of the board of Pre-Sal Petróleo (PPSA) and secretary of Petroleum, Natural Gas, and Biofuels of the Ministry of Mines and Energy until October 2021.

He has a degree in industrial chemistry, a master’s in materials engineering from the Military Institute of Engineering (IME), and a doctorate in energy planning from the Federal University of Rio de Janeiro (UFRJ).

He was also an artillery officer in the Army between 1983 and 1991.