Petrobras in for a $20 billion refund?

Brazilian oil company Petrobras, considered world’s most heavily indebted oil major, might be in for a treat.

Namely, news agency Reuters has reported that the Brazilian government might pay Petrobras some $20 billion for offshore areas in Brazil that have lost value since the oil prices fell.

According to Reuters, Petrobras paid more than $50 billion for these offshore exploration blocks in 2010. The deal reportedly included a renegotiation after five years.

Responding to media reports, Petrobras said that the process to determine the value of any such deal was still in progress.

The company said the value should be determined by independent certifiers „hired by us and by the ANP,“ the country’s oil and gas industry regulator.

However, Petrobras said it was too early to talk about the outcome of these independent reviews or about forms of compensation.

Citing a Brazilian newspaper, Reuters reported that there is a scenario at play whereby Petrobras would use a part of the $20 billion refund to pay overdue taxes.

In a statement on Friday, Petrobras said that it would begin negotiations on the amount and form of payment with the government representatives only after the independent experts have completed their work.

Offshore Energy Today staff

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