Indebted state-run oil company Petroleo Brasileiro SA has ruled out bolstering its capital in the short term, a source with direct knowledge of the company’s decision said on Monday.
In a statement released later on Monday, Petrobras, as the company is known, denied media reports of talks for the Treasury to transfer hybrid securities to the company, which would then book the securities as equity until it sold new stock.
Instead of raising capital, Petrobras has opted to look at other alternatives to improve its finances, said the source, who asked not to be named because he is not allowed to speak publicly.
Finance Minister Joaquim Levy said on Friday that he did not see an immediate need to inject fresh capital into Petrobras, saying it had adequate resources to sustain its operations.
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Brazil Energy Insight 
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