Member access

4-Traders Homepage  >  Shares  >  BOLSA DE VALORES DE SAO PAULO  >  Petroleo Brasileiro Petrobras SA    PETR4   BRPETRACNPR6

End-of-day quote. End-of-day quote BOLSA DE VALORES DE SAO PAULO - 10/20
17.98 BRL   -5.81%
2h ago MONDAY'S ETF MOVERS : Itb, ilf
7h ago PETROLEO BRASILEIRO PETROBRAS : Ocean rig udw inc announces recent developm..
9h ago PETROLEO BRASILEIRO PETROBRAS : Brazil's presidential election enters its f..
SummaryQuotesChart AnalysisNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll news 

Petroleo Brasileiro Petrobras SA : Brazil States File Oil-Royalties Lawsuits with Supreme Court

03/15/2013 | 03:26pm US/Eastern

RIO DE JANEIRO--Three Brazilian states that stand to lose billions of dollars of revenue from the redistribution of oil royalties filed lawsuits Friday with the country's Supreme Court to block implementation of the new law, court and state officials said.

The lawsuits are the latest step in a long-running political battle that pits Brazil's three major oil-producing states of Rio de Janeiro, Espirito Santo and Sao Paulo against the country's remaining 24 states, which have little oil production and stand to benefit financially from the new distribution scheme. The legal wrangling, however, isn't expected to delay an important auction of new oil and natural gas exploration concessions set for May.

In the filings, the three states said the distribution plan is unconstitutional because it breaks contracts signed by the government with oil drillers over the past decade. The states, which estimate the change will cost them about $3 billion in annual revenue from crude oil and natural gas production, also said the change will cause budget shortfalls.

Rio de Janeiro Gov. Sergio Cabral said the changes compromised public works projects and other investments in the state, including preparations for the 2014 Soccer World Cup and 2016 Summer Olympics.

The states requested an injunction to block implementation of the new royalties regime, in addition to a ruling on the constitutionality of the new law. The law, however, is effectively suspended until the Supreme Court makes a definitive ruling on the lawsuits, a court official said.

Supreme Court Justice Carmen Lucia was assigned the case, and could make a ruling on the injunction as early as Friday, the court official said. The ruling on the injunction would then be reviewed by the full court at a later date, the official said. The Supreme Court holds plenary sessions on Wednesdays and Thursdays.

The new law, which was published Friday in the Federal Register, equally distributes royalties from existing and future oil production between the country's 27 states.

Write to Jeff Fick at Jeff.Fick@dowjones.com

Latest news on PETROLEO BRASILEIRO PETROB
2h ago MONDAY'S ETF MOVERS : Itb, ilf
7h ago PETROLEO BRASILEIRO PETROBRAS : Ocean rig udw inc announces recent developments
9h ago PETROLEO BRASILEIRO PETROBRAS : Brazil's presidential election enters its final ..
1d ago PETROLEO BRASILEIRO PETROBRAS : Brazilian candidates spar over poverty, corrupti..
1d ago PETROLEO BRASILEIRO PETROBRAS : Rousseff admits diversion of funds at Petrobras,..
4d ago PETROLEO BRASILEIRO PETROBRAS : Rousseff, Neves attack corruption in each other'..
4d agoDJADR Shares End Mixed; Petrobras Shares Decline
4d agoDJPETROLEO BRASILEIRO PETROBRAS : Brazilian Shares Fall, Dragged Down by Petrobras..
4d ago PETROLEO BRASILEIRO PETROBRAS : Petrobras: Operational Highlights
4d ago PETROLEO BRASILEIRO PETROBRAS : Petrobras :' Total Production in September
Advertisement
Chart
Duration : Period :
Petroleo Brasileiro Petrob Technical Analysis Chart | PETR4 | BRPETRACNPR6 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF