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By Sabrina Valle and Lisandra Paraguassu
HOUSTON/BRASILIA (Reuters) – Brazilian government officials are discussing a possible replacement for the CEO of state oil company Petrobras because they are dissatisfied with the company’s direction, two sources familiar with the matter told ReutersArray.
President Luiz Inácio Lula da Silva has expressed his dissatisfaction with some of the measures taken by Director-General Jean Paul Prates. This month, Lula asked the CEO to replace Petrobras’ investment plan to prioritize task creation, Reuters reported.
“There will be changes” in Petrobras’ presidency, one of the sources said.
A source close to the discussions, who also spoke on condition of anonymity, said Prates is expected to be replaced at some point, but there is no replacement yet fit to take over the position.
Brazil’s presidential palace denied the report.
Fuel costs have also caused tension in relations between Prates and the government. Last week, Mines and Energy Minister Alexander Silveira said it was time for Petrobras to reduce diesel and gas costs at its refineries.
Lula has also urged the oil company to resume efforts to build a fertilizer plant, a commodity that Brazil will have to import to meet the demand of its agribusiness sector.
Petrobras did not respond to a request for comment.
On Monday, O Globo newspaper reported that Lula’s chief of staff, Rui Costa, would propose a replacement for Prates to the president. Costa later denied this on social media.
(Reporting via Sabrina Valle and Lisandra Paraguassu; writing via Peter Frontini; editing via David Gregorio)