Brazil President says report on Petrobras purchase of Texas refinery "flawed"

|About: Petrobras - Petroleo Brasil... (PBR)|By:, SA News Editor

Brazil President Rousseff's backing of a 2006 Petrobras (PBR +0.7%) purchase of a Texas oil refinery that has turned into a major headache for the company was based on a flawed internal report, according a statement from the president's communications office.

The purchase has become a scandal in Brazil, as PBR spent nearly $1.2B to buy the refinery that had changed hands only a year earlier for ~$60M; Brazil's Federal Police opened an investigation into the matter last week.

The statement was published in response to an article in a local newspaper that claimed Rousseff had backed the controversial refinery purchase when she was chairwoman of PBR's board of directors.