Petrobras set for $25b share sale
Tuesday, 15 June 2010
LONDON, June 14 (Reuters): Brazil's state-run oil company Petrobras is preparing a share sale to raise an estimated $25 billion to fund the development of the country's vast subsalt oil reserves, the Financial Times reported Monday.
Details of the rights issue remained unclear but a share placing could take place as early as next month and would allow the company to raise capital without harming its investment grade credit rating, the FT said.
Petrobras could not immediately be reached for comment.
Brazil's discovery of major offshore oil prospects have bolstered the reputation of the South American nation's deep water fields as a major energy frontier.
The pre-salt region is a vast geological formation about 200 kms wide and over 800 km long off Brazil's southern coast.
Details of the rights issue remained unclear but a share placing could take place as early as next month and would allow the company to raise capital without harming its investment grade credit rating, the FT said.
Petrobras could not immediately be reached for comment.
Brazil's discovery of major offshore oil prospects have bolstered the reputation of the South American nation's deep water fields as a major energy frontier.
The pre-salt region is a vast geological formation about 200 kms wide and over 800 km long off Brazil's southern coast.