State-run Brazilian oil major Petroleo Brasileiro (Petrobras) has laid out plans to raise between $15-$30 billion through a share sale to minority investors. Petrobras is seeking to raise the money in order to finance its operations over the next few years, as part of its ambitious $174.4 billion investment plan, which is scheduled to run until the year 2013. The share sale, which is expected to take place during the first half of the year, will result in the Brazilian government having an increased stake in the company in exchange for allowing the firm to produce 5 billion barrels of oil from operations in offshore areas.

However, the incumbent ruling Brazilian Workers' Party must move fast to approve the share sale in Congress before the presidential campaign picks up in the second half of 2010. If passed successfully through Congress, the laws will likely make it more difficult for Brazil to develop its offshore oil reserves because Petrobras will be the operator of all new projects, Gianna Bern, president of energy investment adviser Brookshire Advisory & Research commented.

At present, Petrobras controls virtually all upstream oil and gas production in the South American country, as well as dominating exploration activity in the region. Outside of Brazil, the firm is widely regarded as a world leader in deepwater exploration. Petrobras is in a privileged position as it now participates in international oil firm concessions with a large minority stake, meaning it will be present in all of the country's new discoveries, even if these are operated by foreign firms.

The company's five-year strategic plan for 2009-2013 was initially released in January of last year after a three-month delay caused by uncertain economic conditions. The plan calls for a total investment of $174.4 billion, which is a 55% increase on the $112.4 billion the company declared that it would ring-fence for its 2008-2012 investment plan - an average of $34.88 billion annually.

Tags: Petrobras