Brazil's Ultrapar to invest $659 mln
Ultrapar Participações SA , a large player in energy and infrastructure in Brazil, plans to invest 2.17 billion reais ($659 million) in 2017 to increase output and modernize its operations, the company said in a filing on Friday. More than half of that investment, or 1.1 billion reais, will go to its fuel distribution unit Ipiranga, the country's second largest. In November, Ultrapar bought Petrobras' liquefied petroleum gas unit, Liquigás Distribuidora SA, for 2.8 billion reais in an effort expand its margin.
Petrobras CEO Says Expects More Divestitures in Oil Industry
Global upstream investment is likely to fall next year and industry divestitures could reach $35 billion, the head of Brazil's state-run oil company Petroleo Brasileiro SA said on Tuesday. Petrobras' Chief Executive Officer Pedro Parente told reporters at the sidelines of an event in New York that he expects a divestment trend in the industry. (Reporting by Guillermo Parra-Bernal; Writing by Alonso Soto; Editing by Phil Berlowitz)
Brazil Gov't Decided Not to Push Ahead with Tapajos Dam
The Brazilian government has decided not to move ahead with the Sao Luiz do Tapajos hydroelectric dam project in the Amazon for the time being, Mines and Energy Minister Fernando Coelho Filho said on Tuesday. Coelho Filho also said that a bill that would relieve the state-run oil company Petroleo Brasileiro SA of its obligations to be the operator in all subsalt oil prospects will not be voted on until the lower house approves legislation intended to ease states' debt burdens. (Reporting by Leonardo Goy; Writing by Alonso Soto and Reese Ewing)
Liquigás Sale Could net Petrobras $768 mln
Brazil's state-run oil company Petroleo Brasileiro SA could get up to 2.5 billion reais ($768.07 million) from the sale of its liquefied natural gas distributor Liquigás Distribuidora SA, a local daily reported on Wednesday. In June, the debt-laden Petrobras, as the company is known, kicked off a competitive auction for Liquigás, a subsidiary focused on the distribution and sale of liquefied natural gas (LNG). Newspaper O Globo reported that the country's largest LNG distributor Ultragaz…
No Plans to Privatize Petrobras: CEO
The Brazilian government has no plans to privatize state-run oil company Petroleo Brasileiro SA and is still deciding whether to sell its controlling share in several units to shore up its finances, the company's Chief Executive Officer Pedro Parente said in an interview with a local newspaper published on Monday. Parente, who took over the leadership of the debt-laden company in May, told Folha de S.Paulo that management continues to study the best option to sell part of its fuel distribution unit BR Distribuidora SA.
Brazil Plans Sub-salt Energy Auction in 2017
The areas on sale will include four blocks adjacent to large existing oil discoveries near Rio de Janeiro, said Felix during an industry event in Rio de Janeiro. The areas, which will be sold under production-sharing agreements, will be adjacent Cacara, Sapinhoa, Gato do Mato and Tartaruga Mestica areas and will require unitization with their existing owners.
New Petrobras CEO Says Political Meddling in Company is Over
The new CEO of Petrobras, Pedro Parente, said on Wednesday that political interference in the state-run company will come to an end and vowed to restore the indebted firm to financial health. Parente, who took office at a ceremony in Brasilia on Wednesday, said Petrobras will sell assets to reduce its debt and not rely on a government bailout. He told reporters that fuel prices will be decided according to the company's interests and not government priorities. "There will be no government interference. That is over," he said.
Chinese Loan to Petrobras may Clear most Debt
A Chinese loan of up to $10 billion to Brazil's Petrobras could pay nearly all its $12 billion in maturing obligations in 2016, easing pressure on the oil company as it struggles to fix its troubled finances by selling assets and slashing spending. The credit line to Petroleo Brasileiro SA, as state-run Petrobras is formally known, is from China Development Bank and was announced on Friday. It is for $5 billion to $10 billion and can be repaid in cash or oil at China's request, a source involved in debt talks told Reuters.
Market Solution Preferred for Abengoa Crisis - Rufino
The head of Brazil's electricity regulator Romeu Rufino told Reuters on Friday he favors a market solution to the crisis of embattled Spanish multinational Abengoa SA, but the government does not rule out taking back its concessions. Brazilian media reported earlier this month that the government was considering the option of intervening in the indebted energy firm after the company failed to honor 375 million reais it owed to investment bank Grupo BTG Pactual SA. (Reporting by Leonardo Goy; Writing by Alonso Soto; Editing by Bernard Orr)
Petrobras May Appeal US Ruling on Investor Lawsuits
Brazil's state-run oil company Petroleo Brasileiro said on Wednesday it could appeal against a U.S. judge's ruling over investors' lawsuits. Reporting by Alonso Soto
Petrobras Denies Talks over Hybrid Notes to Raise Capital
Brazil's state-run oil company Petroleo Brasileiro SA said in a statement on Monday there are no talks "at this moment" about using hybrid notes as a way to bolster its capital, denying media reports of a possible capital injection by the government. (Reporting by Alonso Soto; Editing by Christian Plumb)
Key Union Ends 20-day Strike at Brazil's Petrobras
A key workers union at Brazilian state-run oil company Petroleo Brasileiro SA voted on Friday to end a 20-day strike that disrupted output. Workers at the Sindipetro Norte Fluminense local, who had ignored the largest oil workers' union FUP's call to end the strike that started on Nov. 1, will return to work Friday evening at onshore operations, union spokesman Tezeu Bezerra. Other workers will start returning to the company's offshore platforms early on Saturday, Bezerra said. (Reporting by Alonso Soto)
Petrobras Ups industrial LGP Price 11 pct
Brazilian state-run oil company Petroleo Brasileiro SA said on Thursday it will raise the price of liquefied petroleum gas (LPG) for commercial and industrial clients by 11 percent, effective midnight (0300 GMT) on Friday. The company said the increase does not affect the price of LPG sold in smaller containers for residential uses such as household cooking, which rose 15 percent on Sept. The increase in LPG for residential use was the first in Brazil in 12 years. The increase comes as Brazil's real has plunged against the U.S.
Petrobras BoD Approves Chairman Leave of Absence
The board of directors of Brazil's state-run oil company Petrobras approved the leave of absence of its chairman Murilo Ferreira until Nov 30, the company said in on Wednesday. Ferreira, who is also the Chief Executive Officer of mining company Vale, requested the leave of absence for personal reasons, according to the minutes of the board's meeting on Sept. 14. Petrobras's CEO Aldemir Bendine said on Monday he is confident Ferreira will return to head the company's board. Reporting by Alonso Soto
Petrobras Reaches Deal for Reorganization of Sete Brasil
Brazilian state-run oil company Petrobras and other investors reached an agreement to approve the restructuring plan of ailing oil-drilling-rig builder Sete Brasil Participações SA, two leading local newspapers reported on Friday. The plan would pave the way the refinancing of Sete Brasil's $3.8 billion in debt. Shareholders reached a deal for Sete to operate five drills in a joint venture with an international partner, newspapers Valor Economico and Folha de Sao Paulo reported, without disclosing sources for the information.
Odebrecht Wins $537 mln Contract in Panama
Brazilian engineering company Odebrecht SA, which has been charged with corruption, was part of a consortium that won a project worth half a billion dollars to rebuild a Panamanian coastal city. Odebrecht said in a statement on Friday that the successful bid shows the confidence Panamanian authorities have in the family-run company. Brazilian police arrested Odebrecht chief executive Marcelo Odebrecht and other senior executives last week on charges the company spearheaded a $2.1 billion bribery scheme at state-run oil firm Petrobras.
Brazil freezes $43.3 mln of Petrobras contractor's assets
A Brazilian court ordered frozen 137.5 million reais ($43.26 million)in assets of engineering firm Mendes Junior and some of its former top executives under investigation in a massive corruption scandal at state-run oil company Petrobras. In a statement, the office of Brazil's federal prosecutor said the freeze is equivalent to the kickbacks and bribes that the group allegedly paid to Petrobras officials to win contracts. The Mendes Junior group and former executives have 15 days to present those assets…
Petrobras covers 2015 financial needs with loans, sale
Brazilian state-run oil company Petroleo Brasileiro SA said on Friday it has approved a series of credit and sale operations to cover its financial needs for this year. Petrobras, as the company is known, approved a letter of credit for export from Banco do Brasil for 4.5 billion reais ($1.48 billion) through its subsidiary BR Distribuidora. The company approved a standby credit limit of 2 billion reais with Caixa Economica Federal for up to 5 years, and also agreed to a pre-approved financing limit of 3 billion reais with Banco Bradesco SA.
IMF sees Brazil Economy Shrinking, Growth Hinging on Austerity
The Brazilian economy will likely shrink this year, but the South American country could return to growth in 2016 if it succeeds in boosting investor confidence with its austerity drive, the International Monetary Fund said on Friday. The IMF lowered its 2015 forecast for Brazil's economic performance to a 1 percent contraction from the 0.3 percent growth it forecast in January due to tighter fiscal and monetary policies and a drop in investment by state-run oil company Petrobras.
Brazil Sees No Need to Capitalize Petrobras
Brazil currently has no plans to capitalize Petrobras despite market fears the state-run oil company could need fresh capital after Moody's cut its credit rating to junk, two government officials told Reuters on Wednesday. Moody's Investors Service cut Petrobras' rating late on Tuesday by two notches to Ba2 from an investment grade Baa3 and kept the firm on review for further downgrade, citing concerns over an ongoing corruption scandal and liquidity pressures.
