The company’s American depositary receipts dropped more than 6% after the close of regular trading in New York following the announcements.
Brazil’s President Luiz Inacio Lula da Silva has fired Jean Paul Prates, the chief executive of state-owned oil company Petroleo Brasileiro SA, following a dispute over dividend payments.
The decision was confirmed by people familiar with the matter, who asked not to be identified discussing private matters. Petrobras, as the company is commonly known, said in a statement late on Tuesday that Prates is expected to officially resign at an upcoming board meeting.
Lula, as the president is known, plans to nominate Magda Chambriard, the former head of Brazil’s oil and gas regulator, to replace Prates, according to another person familiar with the matter. Petrobras confirmed that the Energy Ministry had proposed her for CEO.
