Petrobras Secures $1.8b Loan for Refinery

MarineLink.com
Tuesday, April 08, 2014

Petroleo Brasileiro SA borrowed 4 billion reais ($1.8 billion) in a 17-year loan from Banco Bradesco SA to help pay for work on the Abreu e Lima refinery in northeastern Brazil, a source with direct knowledge of the deal said on Tuesday.

Petrobras, as Brazil's state-controlled oil producer is known, will pay annual interest of 9.5 percent plus Brazil's TR minimum savings remuneration rate, said the source, who declined to be identified because terms of the deal are subject to banking secrecy laws in Brazil. The TR yielded 0.3 percent in the 12 months through the end of February, according to the BM&FBovespa exchange.

The Abreu e Lima Refinery, or RNEST, outside of Recife is expected to cost $20 billion by the time it reaches full operating capacity of 235,000 barrels a day in mid-2015.

When first proposed nearly a decade ago the refinery was supposed to cost $4.8 billion. It is now years behind schedule and Petroleos de Venezuela SA, which had planned to take a 40 percent stake in the plant, has pulled out.

The loan comes as Petrobras, which has become involved in a series of scandals entangling its management and cost-control systems, addresses its fundraising needs for 2014. The company has already raised $25 billion from bond sales this year.

Borrowing costs are rising for the Rio de Janeiro-based oil major. Last month its debt ratings were cut by Standard and Poor's in the wake of Brazil's sovereign rating downgrade.

On Monday, a source with direct knowledge of Petrobras' plans told Reuters that Petrobras had shelved a 3 billion real sale of infrastructure bonds in Brazil as well as a reopening of bond sales in British pounds and euros.

The source said Petrobras was concerned the scandals might limit demand or raise the cost of the sales. Petrobras denied the report.

($1 = 2.20 Brazilian reais)

(By Guillermo Parra-Bernal; Additional reporting by Jeb Blount in Rio de Janeiro; Editing by Phil Berlowitz)

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Panama Canal Infrastructure to be Valued by VRC

Leading provider of independent valuations, Valuation Research Corporation (VRC) says it has been engaged by the Panama Canal Authority to value the locks, dams,

Box Ships on Slippery Containership Slope in Q2

"The reduced charters on the 'Box Queen', 'CMA CGM Marlin' and 'CMA CGM Kingfish' were the contributing factors to the 24% decline in our adjusted time charter revenues year over year,

Norwegian to Buy Prestige Cruises in $3b Deal

Norwegian Cruise Line Holdings Ltd (NCLH.O) said it would buy Prestige Cruises International Inc from its owner Apollo Global Management LLC (APO.N) in a $3 billion

Energy

Shell CEO: US Should Export Oil, Embrace Global Markets

The head of energy company Royal Dutch Shell said on Tuesday that U.S. policymakers should lift the crude oil export ban because allowing the shipments would make global energy system more stable.

Bureau Veritas Diversifies with MatthewsDaniel Acquisition

Bureau Veritas announced today that it has acquired MatthewsDaniel Ltd, a global provider of loss adjusting and risk assessment services for the offshore industry.

Fogal Retires from Zentech After 57 Years in O&G

Robert “Bob” “Sonny” Fogal, Jr., one of the icons in the offshore oil and gas industry, has decided to retire from front-line work as Zentech’s Director of Business Development.

News

USCG Cutter Eagle to Open for Tours in Yorktown

Coast Guard Cutter Eagle, America's tall ship and seagoing classroom for future officers in training, is scheduled to be open for tours Saturday at Coast Guard Training Center Yorktown.

30 Rosneft Subsidiaries in All-Russian Environmental Cleanup Day

Thirty Rosneft subsidiaries in most of the regions of the Company presence, from Sakhalin in the east to the Arkhangelsk Region in the west, took part in the

Newport International Boat Show Highlights

Newport Exhibition Group, owners and producers of the Newport International Boat Show, announced today activities and amenities for those planning to attend its 44th boat show season,

Government Update

Shell CEO: US Should Export Oil, Embrace Global Markets

The head of energy company Royal Dutch Shell said on Tuesday that U.S. policymakers should lift the crude oil export ban because allowing the shipments would make global energy system more stable.

Polar Code Afoot

The IMO is on the verge of adopting the Polar Code, something that is important and long overdue. The International Maritime Organization (IMO), a specialized agency of the United Nations,

Algeria in Talks to Export Crude to Venezuela

Algeria is in talks to export crude oil to fellow OPEC member Venezuela, Algerian Energy Minister Youcef Yousfi said on Tuesday, confirming a Reuters report. Last week,

Offshore Energy

BW Offshore Awards SatCom Contract to Orange

Provider of floating production services to the oil and gas industry, BW Offshore, says it has signed a 5-year, $12 million contract with Orange Business Services

N-KOM Lays Keel for Qatar’s First Liftboat

Nakilat-Keppel Offshore & Marine (N-KOM) has achieved another milestone with the keel laying of its first liftboat newbuild project, awarded in July 2014 by long-time

Master Fined After Wind Farm Collision

The master of a wind farm support vessel has today been made to pay £3,000 in fines and costs after pleading guilty to breaches of maritime collision regulations.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1083 sec (9 req/sec)