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Petrobras tax dispute

Petrobras loses $2 bn tax dispute, set to take judicial steps

The company revealed it will refrain from making changes to its books

Brazil’s state-owned oil giant Petrobras has revealed that it has lost an appeal for tax dispute amounting to $2 billion during the period between 2011 and 2012.

In a securities filing, Petrobras revealed that it will take judicial measures after losing an appeal for tax dispute.

Petrobras, after losing the appeal for tax dispute, also said it refrain from making any changes on its balance sheet.

Last week, Petrobras revealed that it has started the process to sell its remaining 10 percent stake in its former pipeline subsidiary Transportadora Associada de Gas (TAG).

So far, Petrobras has sold a 90 percent stake in TAG to Engie’s Brazilian subsidiary and Canadian investment fund Caisse de Depot and Placement du Quebec (CDPQ) for $8.6 billion.

During the same period, Petrobras also concluded the sale of its 50 percent stake in Petrobras Oil and Gas BV (POGBV), through which it holds stakes in Nigeria’s Egina and Agbami fields. The stake sale resulted in Petrobras completely exiting the African market.

Petrovida, a wholly-owned subsidiary of Africa Oil bought Petrobras’ stake for an estimated price of $1.454 billion, according to media reports.

Interestingly, Petrovida was set up to acquire Petrobras’ stake in Petrobras Oil and Gas BV. While Vitol and Delonex Energy were part of the initial agreement, the two companies backed out which resulted in Petrovida being a wholly-owned subsidiary of Africa Oil.

Last year, local media reported that the Brazilian government would pay around $10 billion to Petrobras to settle a transfer-of-rights dispute.

The dispute between Petrobras and the Brazilian government goes back to 2010.

 

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