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Brazil: Petrobras Board of Directors approves new Executive Board

Brazil: Petrobras Board of Directors approves new Executive Board

 The Petrobras Board of Directors has approved the names put forward for executive posts at the company, in line with the new administrative structure that was outlined in January.

With the company’s new governance and organizational management model, there will be a 43% cut in the approximately 5,300 administrative posts in non-operational areas, well over the initial target of 30%. The names of the executives that have been approved are:

Roberto Moro: Production and Technology Development (DDP&T)

Solange da Silva Guedes: Exploration and Production (DE&P)

Jorge Celestino Ramos: Refining and Natural Gas (DRGN)

Ivan de Souza Monteiro: Finance and Investor Relations (DFINRI)

Hugo Repsold Júnior: Human Resources, HSE and Services (DRH&S)

João Adalberto Elek Júnior: Governance, Risk and Compliance (DGRC)

The election of the senior executives was conducted according to the criteria of integrity analysis, carried out by the Compliance area, and technical and management skills, which were assessed by the Remuneration and Succession Committee, prior to approval by the Board of Directors. In addition to the reduction in management posts, the new structure also provides for the redistribution of activities and the merging of certain areas. It is estimated that these measures will bring about a cost reduction of up to R$ 1.8 billion per year.

Accountability  - The new governance model, adopted along with the new structure, will strengthen the management accountability mechanism. Six statutory technical committees are to be set up, comprising executive managers who will share the responsibility for decision making and be tasked with conducting prior analysis and making recommendations regarding the matters that are to be decided by the executive directors. In view of their statutory nature, the actions of these committees will be subject to supervision by the Brazilian Securities and Exchange Commission (CVM).

Changes in certain áreas - Corporate functions and services in the Office of the CEO, Human Resources, HSE and Services, are to be centralized, bringing activities that were previously scattered within the company to their respective units. Technical skills and project units will also be centralized within a single area (Production and Technology Development) and the Downstream and Gas and Energy areas shall form part of the new Office of the Director of Refining and Natural Gas.

The review of the Petrobras governance and organizational management model has been carried out because of the need for corporate alignment with the new business environment, the priority given to profitability and capital discipline, and the strengthening of the controls and compliance of the procedures, in addition to broadening the level of accountability of the executives. The modifications in the Petrobras Bylaws will be submitted for approval at the General Meeting of the Shareholders, to be held on April 28th.  PetrolWorld received the above statement from Petrobras on Thursday 31st March.  The Petrobras meeting itself took place on Wednesday 30th March 2016 – PetrolWorld 0316

 

Last modified onThursday, 31 March 2016 22:46
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