• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 3 hours China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 28 mins Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 14 hours Iran Is Winning Big In The Middle East
  • 2 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 18 mins It's Not the Job of the Government to Dictate Where Businesses Should Go
  • 11 hours Strong, the Strongest: Audi To Join Mercedes, BMW Development Alliance
  • 14 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 1 day Trump cancels Denmark visit amid spat over sale of Greenland
  • 15 hours Not The Onion: Vivienne Westwood Says Greta Thunberg Should Run the World
  • 23 hours OPEC will consider all options. What options do they have ?
  • 12 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 7 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 14 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
The 5 Hottest Gold Stocks Of 2019

The 5 Hottest Gold Stocks Of 2019

Bullish signs are mounting for…

Petrobras Could Get $14B From Government To Settle Rights Dispute

PBR

Brazil’s oil giant Petrobras could pocket US$14 billion from the government to settle a long-running dispute for a number of offshore oil fields that Petrobras has the rights to develop but not the financial means, Reuters reports citing a Petrobras regulatory filing.

The so-called transfer-of-rights area was assigned to Petrobras back in 2010 to extract 5 billion barrels of oil and gas based on the oil prices at the time. The complex provisions of the contract, however, included a review of the costs in the area after it was declared commercially viable in 2014.

Both parties—the government and Petrobras—have claimed that they are owed billions of U.S. dollars, and the oil company has also disputed the estimates of the reserves in the area made by the country’s oil regulator, ANP.

The state oil firm has explored the area and found that a lot more oil lies in this low-risk offshore zone. There are estimates that the transfer-of-rights area could hold up to 15 billion barrels of oil in excess of the 5 billion barrels to which Petrobras was entitled to produce when the government transferred the area to the state firm in 2010.

Related: Saudis Set Sights On $80 Oil

Now, Petrobras has indicated there is a good chance that they will find an end to the dispute and start looking for partners to develop these fields, but only after an audit court greenlights the settlement. Both the company and the government need to agree with the terms of the settlement for this to happen.

A separate Reuters report said Petrobras was already raising funds for the development of the transfer-of-rights area. The company will sell up to three issues of local unsecured debt to the tune of US$810 million (3 billion reias) that will be used in the development of the fields.

Brazil is already a hot spot for Big Oil companies because of its abundant oil and gas resources in the pre-salt zone. After the settlement of the transfer-of-rights dispute, it can become an even more attractive destination for Big Oil.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Rafael Amaral Silva on January 08 2019 said:
    Petrobras , (IBOV: PETR4) (NYQ: PBR)

    currently trading at NYQ 15.24 (+1.23%) is expected to go as far as 72.00

    The new president elected Jair Bolsonaro assigned the brazilian expert Roberto Castelo Branco to be the new Petrobras CEO, his first act was to fire 4 of the 7 directors of the company, those 4 were appointed by the "Partido dos trabalhadores" (workers party) that robbed Brazil for
    thirteen years and are responsible for the biggest corruption case in all history of modern age where Petrobras was the biggest victim.

    But that wasn't enought to break Petrobras, it's stocks price was 72.00 in 2008 (before the workers party) all the way to 3.00 in 2016, now in its crescent recovery only 6 days after the new president takes office its allready up 15%(!!).

    Taking in to account that the new year started and we are expecting a raise on oil barrels price to at least 60usd/barrel becouse of the OPEC deals (starting this year) and stated declining production in the US and Saudi Arabia below the OPEC new goal..

    Taking into account that US market is optimistic about the end of the China/US trade war, this will allow industrial growth and would increase the global demand for oil driving oil price up.

    I'm a happy brazilian and everyone here can sense this "changing vibe" and the numbers never lie, Petrobras has been sweapt clean of every possible corrupt scheme and now its the safest company to invest in the oil business.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play