November 1, 2009
by John RumseyFunding for the next stage of Petrobras $174 billion budget through 2013 is becoming clear. The government plans to sell up to five billion barrels of oil reserves in return for additional shares in the company, the Brazilian oil producers CFO Almir Barbassa tells LatinFinance. In a separately structured but related deal, minority shareholders will be invited to subscribe to new equity, he notes.
The transactions depend on congress approving a law to allow the government to sell oil, says Ted Helms, director of investor relations at Petrobras. The chamber of deputies planned to vote November 10, after which it will go to the senate. If approved by the
The government’s plans for development of the pre-salt fields in Brazil put Petrobras firmly centre stage. Presidential elections loom and detail is lacking, but oil experts are excited.