Petrobras to maintain some Argentine operations

By GERALD.JEFFRIS

BRASILIA -- Petrobras remains well financed and isn't facing cash flow difficulties as suggested by some market rumors, its president said.

Responding to questions from lawmakers on a Brazilian congressional committee, Petrobras President, Ms.Graca Foster said company initiatives to raise cash didn't indicate it was undergoing problems.

Petrobras has a cash reserve of $20 billion, she said. "This information isn't correct."

The executive said that a recent $11 billion bond sale by the company was aimed at more growth and investment, and not at meeting pending obligations.

Additionally, she said Petrobras didn't plan to fully withdraw from operations in neighboring Argentina despite confirmation of its interest in selling some assets there.

Regarding operations in the US, Ms. Foster said that for the present the company planned to hold on to its Pasadena refinery in Texas, but admitted that the operation could be part of divestment plans in the future.

However, she said Petrobras' current outlook for its operation in the US market was positive.

Dow Jones Newswires

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