Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

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 - 06/29
12.75 BRL   -3.48%
06/29DJADRs End Lower; National Bank of Greece Drops Sharply
06/29DJPETROLEO BRASIL : Petrobras Rules Out Issuing New Shares
06/29DJBrazil's Petrobras Slashes 5-Year Investment Budget -- 2nd Update
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector 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

React to this article
Latest news on PETROLEO BRASILEIRO PETROB
06/29DJADRs End Lower; National Bank of Greece Drops Sharply
06/29DJPETROLEO BRASILEIRO PETROBRAS : Petrobras Rules Out Issuing New Shares
06/29DJBrazil's Petrobras Slashes 5-Year Investment Budget -- 2nd Update
06/29DJBrazil's Petrobras Slashes 5-Year Investment Budget -- 2nd Update
06/29DJBrazil's Petrobras Slashes 5-Year Investment Budget -- Update
06/29DJBrazil's Rousseff Says Petrobras Share in Pre-Salt Oil Projects 'Isn't So Lar..
06/29 PETROLEO BRASILEIRO PETROBRAS : Oil giant Petrobras cuts investment 37 pct.
06/29DJBrazil's Petrobras Slashes 5-Year Investment Budget -- Update
06/29DJBrazil's President Seeks Investment During U.S. Visit
06/29DJPETROLEO BRASILEIRO PETROBRAS : Brazil's Petrobras Slashes 5-Year Investment Bud..
Advertisement
Chart
Duration : Period :
Petroleo Brasileiro Petrob Technical Analysis Chart | PETR4 | BRPETRACNPR6 | 4-Traders
Income Statement Evolution
More Financials