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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (54169)	8/28/2009 4:43:12 PM
From: elmatador	Respond to of 218042

Brazil may pump $53 bln into Petrobras. to boost investment capacity as the company prepares to tap billions of barrels of oil from offshore reserves, the daily newspaper Valor Economico said on Thursday. This is on top of the 2 billion EXIMBANK lent :-) Brazil may pump $53 bln into Petrobras. Thu Aug 27, 2009 7:45am EDT SAO PAULO, Aug 27 (Reuters) - Brazil's federal government may inject up to an additional 100 billion reais ($53 billion) into oil giant Petrobras (PETR4.SA)(PBR.N) to boost investment capacity as the company prepares to tap billions of barrels of oil from offshore reserves, the daily newspaper Valor Economico said on Thursday. The plan comes as President Luiz Inacio Lula da Silva seeks to increase state control over the massive subsalt fields by changing the current concession regime to a production sharing system, creating a state fund for oil wealth and founding a new state-run energy holding firm. According to a senior government official who wasn't cited by name, the government would sell investors securities backed by oil to raise cash for the capital injection, Valor said. The minimum amount being analyzed for the capitalization is 40 billion reais, Valor said, citing the source. The plan, which would boost the government's share of Petrobras' common stock to up to 70 percent from 55.7 percent now, would more than double the company's market value to 700 billion reais from about 300 billion reais currently, Valor said. A spokeswoman for Petrobras told Reuters the company won't comment on the Valor report. Spokespeople at Chief of Staff Dilma Rousseff's office and the mining and energy ministry in Brasilia didn't respond to messages left at their offices seeking comment. Lula is slated to send as early as next week a proposal to Congress to explore massive oil reserves in the seabed off the coast of Brazil. The plan includes giving Petrobras the upper hand in future bidding for the deposits, requiring future subsalt projects be operated only by Petrobras. ($1=1.867 reais) (Reporting by Guillermo Parra-Bernal; editing by Jim Marshall)