Petrobras chair reinstated after suspension for allegations of non-compliance

April 17th, 2024

Oil giant Petrobras’ chairman Pietro Adamo Sampaio Mendes has been reinstated to his role after being suspended this week following allegations of non-compliance with the requirements of the company’s bylaws.

Mendes, who also works as a secretary of the Ministry of Mines and Energy in Brazil, was removed from his position as Petrobras’ chairman due to allegations that his government role violates the company’s bylaws, presenting a conflict of interest.

Within his role in the government, Mendes oversees the office of Oil, Natural Gas and Biofuels.

A judge at the 21st Federal Court of São Paulo made the precautionary decision to suspend him in the context of a popular action, a vehicle for safeguarding collective interests in Brazil’s legal system, but this decision was overturned by a higher court.

After the suspension, Petrobras said it would “seek to overturn this decision by means of the appropriate appeal, in order to defend the soundness of its internal governance procedures”.

It also said material facts on the subject would be disclosed “in due course” and noted that the cases are being monitored by internal bodies.

Mendes was appointed chairman the board of Petrobras in 2023, replacing Luiz Rodolfo Landim Machado in the role.

At the time, Mendes served as secretary at oil regulator ANP, Reuters reported, and was chosen by the Brazilian government for the role, as it is a state-run company.

The same court also ruled to suspend Sergio Machado Rezende from the board of directors, also for alleged non-compliance with the company’s bylaws. However, this suspension was also overturned by a higher court this week, Reuters reports.

Last Updated: 18 April 2024