Petrobras Management Under 'worrying' Political Pressure Says Union

Petrobras (PETR4.SA) workers union FUP on Tuesday lashed out against alleged “political actions” aimed at pressuring the state-run Brazilian oil company’s top management, saying in a statement they were “worrying” and would weaken the firm.

FUP’s remarks come a day after Reuters reported, citing sources, that officials in the Brazilian government have been discussing the possible replacement of Chief Executive Jean Paul Prates as they are unhappy with the firm’s direction.

The alleged pressure on Prates comes amid debate over a new Petrobras investment plan due by the end of the month.

Brazil's President Luiz Inacio Lula da Silva — Brazil’s President Luiz Inacio Lula da Silva

President Luiz Inacio Lula da Silva has shown dissatisfaction with a draft proposoal, asking Prates to make changes to prioritize local job creation, sources told Reuters last week.

That pressure and the possible management shakeup may add to concerns of political interference in the company, which under previous administrations has come under pressure to boost Brazil’s economy over the concerns of private investors.

Reporting by Marta Nogueira Writing by Fabio Teixeira Editing by Brad Haynes and Chizu Nomiyama

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