Rio de Janeiro – Last Thursday (28th), at Extraordinary and Ordinary General Assemblies, Petrobras shareholders approved the oil company’s restructuring plan, which provides for modifications to its articles of incorporation, reduction in number of direction and management positions, and changes to the decision-making process stemming from cost-cutting and the shelving of management jobs. Petrobras hopes to cut costs by as much as BRL 1.8 billion (USD 511.7 million) a year. The information was released late last evening by Petrobras.
The articles of incorporation reform will lead to “increased adherence to best practices in governance, with the duration of board members’ terms changed to two years and a maximum of two consecutive reelections; reduction in number of remunerated Board of Directors members from 18 to 10 and the elimination of deputy positions; and the appointment of different people for posts of chairman of the Board of Directors and president.”
The new governance and organizational management model stemming from the changes to the statute adds to the actions already taken that have led to a 43% reduction in 5,300 management positions in non-operational areas. The restructuring includes the merging of different areas and a redistribution of activities.
*Translated by Gabriel Pomerancblum
