In addition to detecting a conflict of interest, the ruling also points out other alleged breaches, such as the failure to use a recruiting agent when Sampaio Mendes was appointed to the position.

A Brazilian judge has suspended the president of the board of directors of state oil company Petrobras, Pietro Sampaio Mendes, on account of a conflict of interest in relation to his role in the Ministry of Energy, according to a ruling leaked to the press.

The ruling, by Judge Paulo Cezar Neves Junior, of Sao Paulo, also ordered the suspension of wage payments to Mendes.

In addition to the conflict of interest, the ruling also points out other alleged breaches, such as the failure to use a recruiting agent when Mendes was appointed to the position.

In a statement, Petrobras said it would appeal to "defend the integrity of its internal governance procedures" and that any relevant developments would be disclosed to the market.

The ruling comes after the Sao Paulo court on Monday suspended another board member, Sergio Machado Rezende, for "alleged failure to comply with the requirements of the company's bylaws in the appointment."

According to a company source, two other board members could also be removed for conflicts of interest or for not meeting the necessary requirements for their functions.

Petrobras shareholders had appointed Mendes to the position last year.

The company's previous board — chosen by the administration of right-wing former President Jair Bolsonaro along with an internal committee — had initially ruled that Mendes and three other members of the incoming board were unsuitable; in Mendes' case due to his role in the ministry.

However, shareholders approved the appointments.

This week's decisions come at a time of tension over the board's decision to withhold extraordinary dividends, against the wishes of CEO Jean Paul Prates, who had requested the distribution of half of the available sum.

The dispute over dividends worsened Prates' relations with the country's energy minister and sparked rumors of his possible dismissal.

On Wednesday, however, sources told Reuters that pressure on Prates had eased and that he would likely remain in his job for the time being.