Petrobras hopes to set oil value with Brazil govt

SAO PAULO, April 30 (BestGrowthStock) – Brazilian energy giant Petrobras
(PETR4.SA: )(PBR.N: ) said it will propose that the company and the
Brazilian government negotiate a preliminary value for barrels of
oil in a capitalization plan that could funnel billions of dollars
into the state-controlled company.

The valuation of the oil has become a contentious issue,
particularly as time runs out for the government to act before the
general elections that will take center stage in October.

Brazil’s government is seeking to capitalize state-run oil
company Petrobras by transferring rights to 5 billion barrels
of oil in the offshore subsalt fields in exchange for new
shares in the company.

The proposal would bolster Petrobras’ balance sheet as it
launches a broad campaign to explore massive deepwater
reserves.

Petrobras has ruled out new borrowing because it would
boost debt.

The company will also propose that the capitalization be
performed through a public offering, in which existing
shareholders will have priority rights to be allocated in
accordance with their pro-rata interest, the statement added.

For details of the capitalization plan please click on
[ID:nN15306577].

Stock Market Money

(Reporting by Luciana Lopez; editing by Carol Bishopric)

Petrobras hopes to set oil value with Brazil govt