Brazilian Petrobras announced the departure of its CEO and CFO this Wednesday, triggering a stock plunge as news emerged that a former regulator with views closer to those of President Luiz Inácio Lula da Silva will take over the helm of the state-owned oil company.

Alongside the confirmation of the CEO’s departure, Jean Paul Prates, after months of intense speculation about his tenure, Petrobras stated in a release that CFO Sergio Caetano Leite would also step down.

Prates lasted less than a year and a half in the role, becoming the fourth Petrobras CEO ousted in as many years for political reasons. His dismissal raises fears that Petrobras may be used as a tool to boost the Brazilian economy at the expense of minority shareholders.

Petrobras’ preferred shares dropped 6% in midday trading, making it the biggest loser on Brazil’s benchmark stock index, the Bovespa.

Industry analysts voiced concern, as Prates was seen as balancing market demands for disciplined capital spending and healthy dividends with political requirements to stabilize fuel prices and invest in job-generating sectors.

Prates’ removal represents a victory for members of Lula’s cabinet advocating for lower fuel prices, reduced dividends, and increased capital spending to create jobs and boost the economy.

Instead of Prates, the government appointed Magda Chambriard, former head of Brazil’s oil and gas regulator ANP under the previous administration of Lula’s Workers’ Party.