Pedro Parente, the CEO of Brazil's state-controlled oil giant Petroleo Brasileiro SA who breathed new life into the scandal-plagued company, resigned on June 1, after a paralyzing nationwide trucker strike forced the government to lower diesel prices.
The company, known as Petrobras, said in a statement the board would choose an interim CEO on June 1 and that the company's other top executives would remain.
Petrobras ADRs plunged as much as 14%, while trading in the Brazil-listed shares was suspended following the announcement.
RELATED: Brazil Oil Workers Begin Strike In New Blow To Government
A key plank of Parente's turnaround campaign for Petrobras and a condition for his taking the job in 2016 was freedom to control fuel prices. He sought to align those more closely with international markets through nearly daily price adjustments.
But on May 27, President Michel Temer, governing with rock-bottom approval ratings, announced plans to placate the striking truck drivers—who were protesting the high cost of diesel—by freezing fuel prices on a monthly basis and taking other measures to bring domestic diesel prices down.
Although Temer promised the government would compensate Petrobras for any losses, the move may have crossed Parente's red line against political interference.
Parente had said he would not quit during the crisis. But rumors swirled about a possible exit after Parente, a turnaround expert, was named chairman of troubled poultry company BRF in April.
Recommended Reading
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.
Gibson, SOGDC to Develop Oil, Gas Facilities at Industrial Park in Malaysia
2024-02-14 - Sabah Oil & Gas Development Corp. says its collaboration with Gibson Shipbrokers will unlock energy availability for domestic and international markets.
E&P Highlights: Feb. 16, 2024
2024-02-19 - From the mobile offshore production unit arriving at the Nong Yao Field offshore Thailand to approval for the Castorone vessel to resume operations, below is a compilation of the latest headlines in the E&P space.
E&P Highlights: Feb. 26, 2024
2024-02-26 - Here’s a roundup of the latest E&P headlines, including interest in some projects changing hands and new contract awards.
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.