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Petrobras initiates extra-judicial mediation with Sete Brasil

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State-controlled oil producer Petroleo Brasileiro SA reported that the extrajudicial mediation proceeding began with a probe provider Sete Brasil Participacoes SA, which entered judicial recovery after its efforts to secure a long-term contract with an oil company failed.

Petrobras and Sete Brasil have agreed to choose a mediator for a legal dispute that forced the rig leaser to seek creditor protection against R$18 billion reais (US$5.7 billion) of debt. In a Thursday Sept 21th securities filing, Petrobras said Gustavo Binenbojm had been picked by both parties to mediate the dispute.

Billionaire project began operating in 2014, when a Petrobras and a Brazil merged with the corruption scandal investigated by the Car Wash operation. An investigation into the fulfillment of a long-term contract.

According to a statement from Petrobras, the mediator chosen by the parties of Gustavo Binenbojm. The mediator has no decision-making power, but the aids and estimates as parties identify or develop consensual solutions to a certain controversy.

Result of the mediation is subject to the rules of corporate governance and compliance of the company, as well as to the approval of its competent bodies, said Petrobras.