Petrobras says end of SBM contracts could cut profit by $15B

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

Petrobras' (PBR -0.4%) profit could be reduced by $15B between 2014 and 2018 if it had to suspend oil platform contracts with Holland's SBM Offshore (SBFFF), the company said in a Brazilian securities filing over the weekend.

The potential reduction in profit is based on an estimate of the amount of lost oil and natural gas output and additional spending needed if PBR had to stop using the floating oil production platforms leased from SBM.

SBM is the subject of investigations in Brazil, the Netherlands and the U.S. over the alleged payment of $250M in bribes in Africa and South America, including $139M allegedly paid in Brazil.