Petrobras Deal Ends Dispute

Petróleo Brasileiro (Petrobras), Brazil’s state-owned oil company, has reached a deal to buy the share of the Macae power plant from Houston-based energy distributor El Paso Corp. The deal, worth $358 million, for the loss-making gas-fired plant to the north-east of Rio de Janeiro, will end a dispute over capacity payments between Petrobras and El Paso. Proceeds from the sale will be used to repay around $225 million of project financing for the plant. Under the terms of the agreement, the parties will look to sign definitive documentation by mid-March, with the sale hopefully completed in the first half of the year.