Petrobras may receive about $14 billion from the Brazilian government to settle a dispute relating to certain oil exploration areas, the state-run oil firm said in a securities filing on Jan. 8.
The dispute centers around payments relating to operations in the so-called transfer-of-rights area off the coast of Brazil.
Such a settlement can only be confirmed after Brazil’s TCU audit court issues an opinion on the matter, Petrobras said, adding both parties have to agree on the terms.
“The draft [of the agreement] under analysis by the TCU contemplates one, among the various scenarios discussed between representatives of the government and Petrobras,” the company said in the filing.
“This scenario, after the TCU’s opinion [is known] and approval by the parties, may result in a credit in favor of Petrobras amounting to approximately $14 billion,” the filing said.
Common shares of Petrobras surged as much as 5.5% in afternoon trading on Jan. 7 after a local newspaper published details of the potential settlement, which the Economy Ministry subsequently denied.
Recommended Reading
Enterprise Declares Quarterly Cash Distribution
2024-01-08 - Enterprise Products Partners’ distribution will be paid Feb. 14 to common unitholders of record by Jan. 31.
TurningPoint Energy Names Naini as President
2024-01-09 - Salar Naini, who previously served as executive vice president of business development for TurningPoint, will lead the company’s daily business operations.
Dorchester Minerals Announces Retirement of James E. Raley
2024-01-05 - Dorchester’s board designated Raley as manager emeritus in recognition of his service.
Vast Appoints Two Additional Directors to Board
2024-01-12 - Vast’s appointment of Peter Botten and Tom Quinn brings the board’s recently expanded size to seven members.
Ovintiv Names Sippy Chhina to Board of Directors
2024-01-12 - Chhina recently retired as a partner at services firm Deloitte Canada LLP.