Gabriel Araujo, Gram Slattery

RIO DE JANEIRO (Reuters) – After two messy, drama-filled weeks struggling to fill the top job at state-run oil company Petrobras Brazil’s government turned this week to low-profile technocrat José Mauro Coelho, and investors welcomed the move.

Coelho has a record that shows he doesn’t want to sacrifice Petrobras profits in order to maintain low fuel prices for Brazilian drivers or achieve other policy goals. On Wednesday, Coelho was selected and preferred shares of Petrobras listed in Brazil, previously Petroleo Brasileiro SA rose 3% Thursday morning.

Energy consultant Adriano Pires pulled out of the nomination by the government to head Petrobras. This was just after Rodolfo Londim, soccer player, declined the nomination. Coelho’s appointment to the CEO position must be confirmed by shareholders next week.

However, investors should not be concerned by Coelho’s attitude on fuel prices. Jair Bolsonaro, President of Brazil is being pressured to reduce pump prices before a heated election in October.

These views are broadly in line with those of Pires (high-profile oil and natural gas consultant), who pulled his name out of consideration due to conflicts of interests with long-term clients.

Late last month, Bolsonaro ousted current Chief Executive Joaquim Silva e Luna amid tensions over rising fuel prices. Sources who knew the situation said that Landim and Decio Odone were approached by government officials. However, neither declined to comment.

Coelho is a veteran researcher at Brazil’s state energy think-tank. He now chairs Pre-Salt Petroleum, a government agency that accepts and sells oil from offshore producers in exchange for their operating concessions. Coelho was the secretary for oil and gas at Brazil’s Mines and Energy Ministry. His term ended in 2021.

Coelho, PPSA and PPSA didn’t immediately reply to inquiries for interviews. He spoke out on October’s state TV to defend the market-friendly Petrobras policy of pricing fuel according to global oil markets. This was in order not fuel shortages.

Coelho at the time stated that “We must have domestic market prices comparable to import prices.”

After receiving the award, Coelho gave another interview in which he argued for Petrobras’s decision to remain focused on its most profitable division, deepwater oil production.

Investors and analysts were pleased to hear that the government settled on an unpaid technocrat. However, investors and analysts cautioned that there is still a risk of political interference, especially if oil prices rise further or if Brazilian voters are suffering at the pumps.

Itau BBA’s analysts sent a Wednesday memo to clients that stated, “We anticipate a positive response tomorrow,” but also noted that there could be recurring problems in the future with ensuring international parity.