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Petrobras CEO says Transfer of Rights talks still ongoing
September 20, 2017 / 3:26 PM / 3 months ago

Petrobras CEO says Transfer of Rights talks still ongoing

NEW YORK (Reuters) - Brazil’s state-run Petrobras said it is unclear when talks will conclude with the government on a revaluation of stakes in offshore oil blocks known as ‘Transfer of Rights’ areas, a Petrobras executive said on Wednesday.

The logo of Brazil's state-run Petrobras oil company is seen on a tank in at Petrobras Paulinia refinery in Paulinia, Brazil July 1, 2017. REUTERS/Paulo Whitaker

Through a 2010 contract, the government exchanged exploratory rights over some high potential oil areas on its coast for equity in Petróleo Brasileiro SA (PETR4.SA), the formal name of Petrobras.

A revaluation of the value of those assets was expected for this year.

“It is not possible to estimate a date for conclusion, because there are other parties involved,” said Chief Executive Pedro Parente to reporters after taking part in a Brazilian investment seminar in New York.

    “From our side, we are prepared to conclude this as soon as possible.”

    Petrobras and the government have yet to start formal discussions over information provided by Brazil’s oil regulator, he said. The regulator assigned companies to evaluate the value of the oil areas in question.

    That information will give an indication as to whether the government owes money to the company.

    A government source told Reuters in June that the government already believes it owes Petrobras money and will seek to make a payment in oil.

    Reporting by Lisandra Paraguassu; Writing by Marcelo Teixeira, Editing by Rosalba O'Brien

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