Petrobras’ $2.2b asset sale to total shelved on court order – october 12, 2017 – zacks.com us money laundering

A cloud of uncertainty looms over brazilian energy giant petroleo brasileiro S.A. Or petrobras’ ( PBR – free report) divestment agreement with france-based TOTAL S.A. ( TOT – free report) . The brazilian federal court has put a partial hold on the $2.2-billion deal signed in march.

Per the deal, petrobras was to sell some of its upstream and downstream assets to TOTAL. On the upstream front, TOTAL was to purchase stakes in the lapa and lara offshore prospects in the santos basin. The company was to acquire a 35% interest in the lapa field and a 22.5% stake in lara field. On the downstream end, TOTAL was to acquire a 50% interest in two thermal co-generation plants in the bahia area and a re-gasification unit in the LNG terminal.

However, a federal court in brazil has blocked the sale of petrobras’ stakes in the lapa and lara oilfields.

The judge granted a ruling in favor of members of a local oil workers union who raised anti-competitive concerns pertaining to the sale.Us money laundering the members of the union were of the opinion that the company should have opted for a public tender instead of a private negotiation.

Petrobras announced that it has not received any notice regarding the same. The company declared that it will take necessary legal steps to protect the interest of shareholders only after receiving an official statement from the court.

Notably, this is not the first time petrobras’ divestment deals have been stalled. In february, the court suspended the company’s $5.2-million deal for sale of its natural gas pipeline unit to canada’s brookfield asset management inc. In april, the court halted the sale of petrobras’ stake in an oilfield to statoil ASA ( STO – free report) . These divestment deals came under scrutiny because of the reported discrepancies in transactions and their failure to comply with regulations. The court believed that the company should have been more transparent in its dealings.Us money laundering however, later, the suspension orders were lifted and the assets were sold under the new rules revised by brazil’s federal accounting court.

The assets sale is part of petrobras’ 2015-2018 divestiture program. The company already sold more than $13.6 billion assets by 2016 and intends to raise another $21.4 billion over the next two years. The move is in line with the company’s aim to generate $35 billion from asset sales. These divestment plans are in sync with the company’s strategy to reinstate investors’ faith in the stock.

Petrobras is presently trying to come out clean of the money-laundering scandal that has led to a huge debt and scarred its credit metrics. The company is also focusing on entering into various strategic partnerships with foreign oil giants to drive exploration momentum. In this regard, the company has inked deal with major players like TOTAL, royal dutch shell plc ( RDS.A – free report) and statoil.Us money laundering

Headquartered in rio de janeiro, petrobras is the largest latin american oil and gas integrated company. It is involved in the exploration, production, refining, retailing and transportation of petroleum and its byproducts, both domestically and internationally. The company currently carries a zacks rank #4 (sell).

You can see the complete list of today’s zacks #1 (strong buy) rank stocks here.

Copyright 2018 zacks investment research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven zacks rank stock-rating system. Since 1988 it has more than doubled the SP 500 with an average gain of +25% per year. These returns cover a period from 1988-2016 and were examined and attested by baker tilly virchow krause, LLP, an independent accounting firm.Us money laundering zacks rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month zacks rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all zacks rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only zacks rank stocks included in zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack ranks stocks can, and often do, change throughout the month. Certain zacks rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

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A cloud of uncertainty looms over brazilian energy giant petroleo brasileiro S.A. Or petrobras’ ( PBR – free report) divestment agreement with france-based TOTAL S.A. ( TOT – free report) . The brazilian federal court has put a partial hold on the $2.2-billion deal signed in march.

Per the deal, petrobras was to sell some of its upstream and downstream assets to TOTAL. On the upstream front, TOTAL was to purchase stakes in the lapa and lara offshore prospects in the santos basin. The company was to acquire a 35% interest in the lapa field and a 22.5% stake in lara field. On the downstream end, TOTAL was to acquire a 50% interest in two thermal co-generation plants in the bahia area and a re-gasification unit in the LNG terminal.Us money laundering

However, a federal court in brazil has blocked the sale of petrobras’ stakes in the lapa and lara oilfields. The judge granted a ruling in favor of members of a local oil workers union who raised anti-competitive concerns pertaining to the sale. The members of the union were of the opinion that the company should have opted for a public tender instead of a private negotiation.

Petrobras announced that it has not received any notice regarding the same. The company declared that it will take necessary legal steps to protect the interest of shareholders only after receiving an official statement from the court.

Notably, this is not the first time petrobras’ divestment deals have been stalled. In february, the court suspended the company’s $5.2-million deal for sale of its natural gas pipeline unit to canada’s brookfield asset management inc. In april, the court halted the sale of petrobras’ stake in an oilfield to statoil ASA ( STO – free report) .Us money laundering these divestment deals came under scrutiny because of the reported discrepancies in transactions and their failure to comply with regulations. The court believed that the company should have been more transparent in its dealings. However, later, the suspension orders were lifted and the assets were sold under the new rules revised by brazil’s federal accounting court.

The assets sale is part of petrobras’ 2015-2018 divestiture program. The company already sold more than $13.6 billion assets by 2016 and intends to raise another $21.4 billion over the next two years. The move is in line with the company’s aim to generate $35 billion from asset sales. These divestment plans are in sync with the company’s strategy to reinstate investors’ faith in the stock.

Petrobras is presently trying to come out clean of the money-laundering scandal that has led to a huge debt and scarred its credit metrics. The company is also focusing on entering into various strategic partnerships with foreign oil giants to drive exploration momentum.Us money laundering in this regard, the company has inked deal with major players like TOTAL, royal dutch shell plc ( RDS.A – free report) and statoil.

Headquartered in rio de janeiro, petrobras is the largest latin american oil and gas integrated company. It is involved in the exploration, production, refining, retailing and transportation of petroleum and its byproducts, both domestically and internationally. The company currently carries a zacks rank #4 (sell).

You can see the complete list of today’s zacks #1 (strong buy) rank stocks here.

Copyright 2018 zacks investment research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven zacks rank stock-rating system. Since 1988 it has more than doubled the SP 500 with an average gain of +25% per year.Us money laundering these returns cover a period from 1988-2016 and were examined and attested by baker tilly virchow krause, LLP, an independent accounting firm. Zacks rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month zacks rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all zacks rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only zacks rank stocks included in zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack ranks stocks can, and often do, change throughout the month. Certain zacks rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.Us money laundering

Visit performance for information about the performance numbers displayed above.

Visit www.Zacksdata.Com to get our data and content for your mobile app or website.

Real time prices by BATS. Delayed quotes by FIS.

NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.