Petrobras to merge with two of its subsidiaries

Petroleo Brasileiro SA (Petrobras) has approved mergers with wholly owned subsidiaries Companhia de Recuperacao Secundaria (CRSec) and the spun off portion of Petrobras International Finance Co. (PIFCo).

Petrobras said both mergers are intended to reduce costs and simplify and streamline the corporate structure of Petrobras Group. The company’s capital will not increase and no new shares will be issued. Shares representing the capital of these subsidiaries will be extinguished.

CRSec operated in the financial structuring of the secondary recovery project for the Campos basin’s Pargo, Congro, Garoupa, Cherne, and Carapeba fields. After liquidating all contractual obligations, Petrobras exercised the call option of all of CRSec shares. The merging process allows for the adequate return of CRSec assets to Petrobras.

Luxembourg-based PIFCo raised capital overseas, facilitating the sale of oil and oil products. Petrobras said successive changes to Brazilian tax legislation prompted the discontinuance of the subsidiary’s activities.

Certain assets and liabilities related to PIFCo’s commercial activities will be transferred to Petrobras. PIFCo will be dissolved after its remaining assets and liabilities, related to capital-raising activities and loan transactions with companies in the Petrobras Group, will be merged into Petrobras Global Finance BV–PGF.

That PIFCo merger will not affect Petrobras’s guarantees and commitments relating to subsidiary-issued bonds, which will continue to be unconditionally and irrevocably guaranteed, Petrobras said.

In 2001, PIFCo priced a $500 million senior note issue. The notes were scheduled to mature in June 2011 (OGJ Online, July 2, 2001).

Related Articles

Market watch: Energy futures prices rose slightly Friday

05/06/2002 Crude oil futures prices rose slightly Friday amid lingering uncertainty about a possible disruption of Middle East supplies, although tensions in ...

Gulf of Mexico oil service sector showing signs of an upturn

05/06/2002 The Gulf of Mexico oil service sector is experiencing the signs of an upturn, analysts with Simmons & Co. International, UBS Warburg LLC, and RBC D...

OTC: Industry, national agencies need to work together to make FPSOs work in the gulf

05/06/2002 Over the coming years, the oil and gas industry will have to keep an open line of communication with national agencies such as the US Coast Guard a...

Market watch: Energy futures prices fall as Iraq lifts embargo

05/07/2002 Crude oil futures prices fell Monday after Iraq announced plans to lift a self-imposed export embargo with exports expected to resume by Wednesday.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected