Petrobras extends gas import deal with Bolivia

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

Petrobras (NYSE:PBR) says it agrees to pay $434M to Bolivia's state-run energy counterpart YPFB to settle a dispute over natural gas payments and secure supplies of the fuel for a gas-fired power plant.

The agreement comes as the companies prepare to work out a new agreement covering the supply of 30M cm/day of Bolivian natural gas to Brazil; the existing take-or-pay contract expires in 2019, and PBR has said it is counting on continued imports from Bolivia to fuel Brazil's economy.

PBR says the deal will generate a $268M loss on its Q3 earnings but will result in a $128M gain for the full year.