SAO PAULO, June 17 (Reuters) - Brazilian state-run oil giant Petrobras (PETR4.SA) New Tab, opens new tab said on Monday it had agreed to join a government tax debt renegotiation program that would result in an estimated 11.9 billion reais ($2.19 billion) hit to its second-quarter net income.

In a securities filing, Petrobras said it had agreed to pay the Brazilian government a total of 19.8 billion reais to end several tax cases, equating to a 65% discount from the original amount the tax office said was owed by the firm.

The agreement would close tax cases from 2008 to 2013 related to funds Petrobras had sent abroad to pay for services such as the chartering of vessels, it said.

The tax payments should also help the Brazilian government to balance its budget as the administration of President Luiz Inacio Lula da Silva seeks new sources of revenue to meet its fiscal targets for this year and 2025.

The announcement was one of the first made by Petrobras since Magda Chambriard took the chief executive role, after Lula dismissed former Petrobras CEO Jean Paul Prates in May. Local media, however, had been reporting a potential tax deal between the company and the government was being discussed before the firm's leadership swap.

From the total amount, Petrobras said it intended to pay about 8 billion reais through legal deposits it had already made or fiscal credits related to previous losses from subsidiaries.

Some 13% of the amount Petrobras agreed to pay is related to deals it has made alongside business partners, the oil giant said, adding it is currently negotiating conditions under which it would receive a repayment in the future from these companies.

($1 = 5.4250 reais)

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https://www.reuters.com/markets/commodities/petrobras-pay-37-billion-close-some-tax-cases-brazil-2024-06-17/