Petrobras Suspends New Oil E&P Divestments

Brazil’s state-controlled Petrobras will suspend any new divestment initiatives in oil E&P, the company said on Dec. 20, following a Supreme Court decision.

The decision suspended an agreement between the company and the Brazilian government that helped shield the company from liability as it seeks to dispose of some $27 billion in assets in order to raise cash to pay its debts. The agreement also imposed transparency rules.

The divestment program is seen as crucial to the company’s growth in the future, and Petrobras said in a statement that divestment initiatives started before May of this year should not be affected.