S&P: Petrobras unaffected

Standard & Poor's said Petrobras Energia SA's (B-/Watch positive/--) announcement that it has reached an agreement with Teikoku Oil Co. Ltd. (BBB+/stable/--) to transfer 40% of Petrobras' participation in Blocks 18 and 31 in Ecuador and 40% of its rights and obligations under the transportation contract of Oil Pipe Oleoductos Crudos Pesados to Teikoku does not affect the ratings on Petrobras.

Under this transaction, Teikoku will assume the obligation to make capital expenditures to develop Block 31. Petrobras will remain the operator in both blocks.

S&P said the companies are unaffected since the transaction does not represent a significant inflow and does not affect production capacity.

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