RIO DE JANEIRO—The chairman of Brazilian state-controlled oil company Petró leo Brasileiro SA, Murilo Ferreira, has taken a temporary leave of absence until Nov. 30, the company said Monday, without giving additional information.

But Mr. Ferreira isn't taking leave from mining giant Vale SA, where he serves as chief executive officer, a spokeswoman for that firm said. She added that Mr. Ferreira's absence from Petrobras is due to "personal reasons."

Deyvid Bacelar, another board member at Petrobras, said he wasn't informed of Mr. Ferreira's reason for taking the time off.

Widely seen as a competent executive, Mr. Ferreira was elected Petrobras chairman earlier this year during a shake-up by the Brazilian government in the wake of a massive corruption scandal. Several political figures, including the previous chairman, ex-Finance Minister Guido Mantega, were removed from the board and replaced with academics and experts with experience in fields such as corporate governance and deepwater oil exploration.

Mr. Ferreira's absence, and the lack of a clear explanation from Petrobras, will likely fuel speculation.

The oil company is struggling to emerge from its worst crisis ever, as the bid-rigging and bribery scandal has destroyed its image at the same time as low oil prices are complicating its efforts to reduce an enormous debt burden. Petrobras has lowered its production targets and announced plans to cut spending and sell nearly $60 billion in assets in coming years, at a time when many other oil companies are doing the same.

Mr. Ferreira hasn't always agreed on the path his colleagues have chosen to take. When Petrobras' board voted to approve a potential initial public offering of 25% of fuel-distribution subsidiary BR Distribuidora, Mr. Ferreira voted against the move, saying Petrobras should have explored other ways to maximize the business's value.

Several analysts also lambasted the decision, saying investors would be likely to demand a steep discount on anything less than a controlling stake in BR Distribuidora, given Petrobras' track record of corruption and government interference.

Write to Paul Kiernan at paul.kiernan@wsj.com

 

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(END) Dow Jones Newswires

September 14, 2015 10:55 ET (14:55 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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