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Petrobras Denies Reported $2.5b Deal for Fertilizer Plant in Bolivia

Petrobras (NYSE:PBR) said Thursday it has not reached any deal with Bolivia’s YPFB on building a new $2.5B fertilizer plant near the border between Brazil and Bolivia.

The statement in a securities filing came a day after YPFB said the two companies were considering a new urea and ammonia plant.

Petrobras (PBR) confirmed that executives had traveled to Bolivia this month for meetings, but said no agreement was reached.

YPFB had said the proposed plant would be located in the border city of Puerto Quijarro and have the capacity to produce 4,200 metric tons/year, with investment costs to be shared by the two countries.

Separately, Reuters reported that Petrobras (PBR) CFO Sergio Caetano said a planned capital reserve will be used solely to pay dividends, easing some of the concerns raised by a planned revision of its internal bylaws.

On Tuesday, Petrobras (PBR) shares fell more than 6% after its board approved a proposal to revise its internal bylaws, including the creation of the capital reserve fund.

Source : Speeking Alpa