Petrobras likely to get credit for oil-for-shares transfer: regulator

The revision of a massive exploration contract between Brazil’s government and Petrobras will be based on the price of oil at the end of 2014, likely leaving the state-run oil company with a credit, the oil and gas regulator ANP said on Tuesday.

The agreement giving Petroleo Brasileiro SA, as the company is officially known, the rights to produce 5 billion barrels of oil in a huge subsalt area in the hands of the government in exchange for Petrobras shares was struck in 2010 when oil was priced at more than $100 a barrel.

Brent oil closed 2014 at $57.33 per barrel, making the rights to 5 billion barrels of oil and gas in the so-called Transfer of Rights Areas in the Santos Basin south of Rio de Janeiro far less valuable.

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