Petrobras Chairman Ferreira Taking Leave of Absence
September 14 2015 - 11:10AM
Dow Jones News
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
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 14, 2015 10:55 ET (14:55 GMT)
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