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Petrobras owes Brazil billions but unlikely to pay in 2018, minister says

Published 01/19/2018, 11:16 AM
Updated 01/19/2018, 11:16 AM
© Reuters.  Petrobras owes Brazil billions but unlikely to pay in 2018, minister says
  • Petrobras (PBR -0.4%) owes Brazil's government billions of dollars tied to offshore exploration rights but is unlikely to pay this year, according to a cabinet minister, who says the government’s 2018 budget does not include any revenue from the rights that has sparked a dispute with the company.
  • The planning minister’s comments suggest the dispute could drag on despite this week's launch of a government commission comprised of representatives from several ministries to accelerate negotiations.
  • The minister also says he sees little resistance from lawmakers to the plan to privatize Eletrobras (EBR +0.6%) through a capital raise or a related deregulation of electricity prices, even though the latter likely would boost rates for consumers.
  • Now read: 3 Companies Poised To Profit Off Brazilian Pre-Salt Plays


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