UPDATE 1-Petrobras to tap Parente as CEO this week, sources say
(Adds details on appointment, background throughout)
By Guillermo Parra-Bernal and Lisandra Paraguassu
SAO PAULO/BRASILIA May 17 (Reuters) - State-controlled Petróleo Brasileiro SA will appoint former presidential chief of staff Pedro Parente as chief executive officer, as Brazil's new interim government seeks to stamp its authority on the debt-laden oil producer, two sources with knowledge of the decision said on Tuesday.
The appointment of Parente, who was formerly President Fernando Henrique Cardoso's chief of staff and currently is the chairman of financial bourse BM&FBovespa SA, could be announced as soon as Friday, said the first source, who asked for anonymity due to the sensitivity of the issue.
Parente is currently outside Brazil, both sources added.
As the largest shareholder in the company known as Petrobras, Brazil's federal government picks the oil producer's CEO, who operates with relative autonomy and often has a direct channel to the president.
Temer wants Parente to help turn around Petrobras, which is the world's most indebted oil firm and is struggling with the impact of slumping prices and a corruption scandal that has restricted access to financing.
Temer took office on Thursday after the Senate suspended President Dilma Rousseff and put her on trial on charges of breaking budget laws.
Rio de Janeiro-based Petrobras did not have an immediate comment. Parente could not be reached for comment. Continuación...