Brazil’s Petrobras to Issue Stocks to Raise US$ 20 Billion in the Market

Petrobras logoBrazilian president Luiz Inácio Lula da Silva has signed the bill governing the capitalization of Brazilian energy giant Petrobras. It is the first step to establish the new regulatory framework for exploiting crude oil under the pre-salt layer of the continental seabed of Brazil. 

According to the law, capitalization will be made by issuing stocks in the market. Experts estimate the offer will bring in about US$ 20 billion.

Petrobras is currently listed in the stock markets of São Paulo, New York, Madrid and Buenos Aires, with 40% of shares owned by the Brazilian government, which is responsible for technical and commercial management.

With the approval of the law, Petrobras is authorized to exploit up to 5 billion barrels of oil in the pre-salt area without opening a bid process, although later the company will have to pay for that concession by issuing security titles to be transferred to the government and then capitalized.

The fields of oil and natural gas under the pre-salt layer are located approximately 7,000 meters below the sea level, extending for 800 km off the Brazilian coast between the Santa Catarina and Espírito Santo states, and could turn Brazil into one of the world’s top ten oil producers.

Lula also approved the most controversial part of the capitalization deal, which allows small shareholders to invest up to 30% of the Guarantee Fund for Length of Service (FGTS), a fund composed of employers’ contributions that serves as a social insurance for workers in Petrobras capitalization system.

Mercopress

Tags:

  • Show Comments (1)

  • ch.c.

    To the idiot of Maurice……
    why dont you ask the brazilian sugarcane cutters & the farms slaves workers HOW WELL they are treated…..compared to FedEx’s Inhuame Treatment !!!!

    Ahhhh….ahhhh

    And to Luis Justidiot “Keep It Simple Guide To Investing” today at http://bit.ly/cNRVvm
    Wellllll…. the author of that guide is still not wealthy….funnily !

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Massacre’s Lesson: Brazil’s Landless Are Not Police Matter

Flávio Botelho, a Brazilian professor in the nucleus of agrarian studies at Brazil’s University ...

Brazil Sees Serious Hurdles to Economically Integrate Latin America

According to the Brazilian president Luiz Inácio Lula da Silva's foreign policy advisor Marco ...

Favelas Growing 4.5% a Year in Brazil

What grew 4.5% a year in Brazil between 1991 and 2000? Unfortunately it was ...

A Proposal: To Make Brazilian College Students Literacy Teachers

The dream of a university education has become a nightmare for more than 50 ...

Brazilian-Arab Intellectuals Spread Arab Culture

The Institute of Arab Culture (Icarabe) in São Paulo, Brazil, is going to promote, ...

Brazilian singer/actress Karina Barros

Florida Premií¨re: A Brazilian Maid Not Made to Work

Picture a successful married couple, both doctors, who hire a Brazilian, Portuguese-speaking maid who ...

Sweden Partipates in Brazilian Seminar on Women Trafficking

The international human traffic network is the third most lucrative in the world, with ...

Brazil Offers Hand to Colombia, Venezuela and Guinea-Bissau

Brazilian presidential spokesman, André Singer, said, yesterday, January 17, that the Brazilian government is ...

A Rebel’s End of the Road

Don Paulo Evaristo Arns is out of the São Paulo archidiocese. It is the ...