The board of Brazilian state-run oil business Petrobras on Tuesday called a phenomenal investors’ conference, an action that just about assures the exit of Chief Executive Roberto Castello Branco.

In a declaration, Petroleo Brasileiro SA, as the firm is formally recognized, claimed it had called the meeting in feedback to a demand by the country’s Mines and also Energy Ministry.

At the conference, shareholders are anticipated to define the substitute of Castello Branco with Joaquim Silva e Luna, a basic selected by President Jair Bolsonaro.

Petrobras’ statement on Tuesday evening greatly puts to bed the possibility of a protracted lawful and also political fight surrounding the CEO swap. Although seven of the 11 Petrobras board members are selected by the government, a lot of had remained dedicated to the typically conventional Castello Branco in recent weeks, even as he came under pressure from Bolsonaro, according to 2 sources with knowledge of the board’s reasoning.

Yet quickly before the conference, a vote on re-electing Castello Branco for another term was replaced with one establishing the investors meeting, one of the resources said.

In the statement, Petrobras priced estimate the board as stating it “will certainly remain to supervise administration requirements at Petrobras, including what those criteria say relative to the pricing policies of the firm’s items.”

Bolsonaro criticized Castello Branco last week after a series of gas cost increases, alarming investors over a feasible go back to politically determined rates that hammered Petrobras’ profits over the past decade.

Bolsonaro on Tuesday informed supporters there were “numerous things incorrect” at Petrobras. “The brand-new CEO will cleanse things up there,” he added.

Talk of a mass board resignation to protest against Castello Branco’s substitute emerged last week, yet has actually mostly faded since Bolsonaro officially stated on Friday he was appointing a brand-new CEO, resources near the issue stated.

Both the board of directors and also executive administration are expected to remain until at least the end of their terms – which for the administration expires on March 20, individuals claimed. Only isolated feasible departures in the mid-term are being thought about, the people claimed.

The board meeting was still recurring as of the evening, one source with direct expertise of the matter stated.

The precise vote tally on the matter was not promptly clear.

Luna, that has actually been running the gigantic Itaipu hydroelectric dam on Brazil’s border with Paraguay, has actually already authorized documents that will begin the common pre-hiring ethics analysis at state-owned Petrobras.

Under Brazilian legislation, an amazing shareholders meeting happens 30 days after the board required it.

Following the meeting, 2 resources claimed, the board will likely call for numerous days to review compliance-related documents before Silva e Luna is officially named CEO.

Brazil-listed preferred Petrobras shares closed up 12.17% on Tuesday, a day after plunging 22%.