© Reuters. A policeman stands in front of the Petrobras headquarters in the course of a protest in Rio de Janeiro

RIO DE JANEIRO (Reuters) – The Brazilian government is most likely to spend about $10 billion to state-run oil firm Petroleo Brasileiro SA to settle the so-named ‘transfer-of-rights’ dispute, newspaper Valor Economico reported on Tuesday, although the parties have not agreed on final terms.

The economic every day, citing a supply with information of the matter, mentioned the payment was a reduction from a earlier proposal of $14 billion. Valor in January had reported that the government had agreed on the larger figure, but the government subsequently denied the report.

The two sides are close to an agreement, the paper mentioned, reiterating statements by public officials in current weeks.

Petrobras, as the firm is broadly identified, did not respond to a request for comment. The economy ministry mentioned that “the negotiations continue” and the final values “will be announced when they are agreed upon amongst parties.”

The transfer-of-rights dispute dates back to a 2010 deal amongst the government and Petrobras relating to a substantial share providing that would have diluted the government’s stake.

To sustain manage of the firm, the government sold Petrobras the rights to discover five billion barrels of oil in an region off Brazil’s coast for 74.eight billion reais at the time. With that money, it purchased extra Petrobras shares.

Brazil’s oil regulator now estimates there are about 17 billion barrels of recoverable oil in the region, and the government is in search of to auction rights for the exploration of the excess oil. Very first, the two sides want to resolve the dispute more than the region, which will outcome in a important payment to Petrobras.

On Friday, Economy Minister Paulo Guedes mentioned – devoid of specifying the currency – that Petrobras and the government had began off 60 billion apart in their negotiating positions, but have been now only two billion apart. The figures most likely refer to dollars, as the two sides at a single point each and every believed they have been owed $30 billion.

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