Crude oil futures dropped in New York trading today – but for many in the energy sector, the big news of the day will come from the Brazilian semi-public oil company Petrobras SA, which is scheduled today to conduct the largest share sale ever conducted.
The company will sell as many as 2.718 billion common shares and 1.983 billion preferred shares – much of it will go to the Brazilian government, which plans to buy about $42.5 billion worth of stock.
In exchange, Petrobras will get the right to develop oil fields with about 5 billion barrels of crude in reserves, including the much-heralded offshore Tupi field, one of the largest discoveries in recent history.
Petrobras began as a state-owned oil company, but a partial privatization helped make it one of the brightest stars in Latin America. Now, the government is moving back in, boosting its stake from 39 percent to 55 percent.
It still controls the company by holding 55.6 percent of all the voting shares.
Crude oil futures fell, as the global market looks oversupplied and the U.S. Department of Labor reported an increase in jobless claims. ICE Brent crude oil futures for December delivery dropped 0.92 percent to $77.57.
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