The CEO of Brazilian state oil company Petrobras, Jean-Paul Prats, has been sacked over heated disagreements over dividends and growing concerns about government interference in the decisions of the IPO-listed company.

Prats, a former senator from Rio Grande do Norte state and a close ally of Lula, has 30 years of experience in the energy sector, but his rapid marginalization indicates the depth of the political and economic rifts surrounding Petrobras.

The Brazilian government has not yet announced who will succeed Prats as CEO.

The roots of the crisis go back to Petrobras' decision last March not to pay exceptional dividends to investors, despite achieving its second-highest net profit ever last year.

This decision angered shareholders, who considered it direct government interference in the company's affairs, especially since it was linked to previous statements by President Lula in which he accused Petrobras officials of neglecting the interests of consumers in favor of pleasing shareholders.

The company now faces major challenges in maintaining its stability and good governance, and ensuring a balance between the interests of shareholders, the government, and consumers in light of a turbulent political and economic environment.